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Fucking PAP to increase GST next month

Papsmearer

Alfrescian (InfP) - Comp
Generous Asset
#1
Photographer: Nicky Loh/Bloomberg
These Are the Taxes Singapore Could Hike in Next Month's Budget
By
Michelle Jamrisko
January 11, 2018, 1:00 PM PST
  • Economists say watch for news on e-commerce, estate duties
  • Income taxes are less likely to be raised after U.S. cuts
Speculation is buzzing that the Singapore government will raise the goods and services tax in its Feb. 19 budget rollout. But GST probably won’t be the whole story.

Authorities have several other options to increase taxes, or at least signal that they’re needed in the coming years, as the city state grapples with rising health and retirement costs as the population ages rapidly.


Here are a few other measures to watch as the budget is announced:

1. E-commerce
Economies in the region are just starting to tackle the sticky issue of how to help level the playing field between brick-and-mortar retail and online vendors through a tax on the latter.

While Malaysia, Thailand and Indonesia all have been brainstorming this kind of levy, Singapore may have to move faster, said Chua Hak Bin, a senior economist at Maybank Kim Eng Research in Singapore. That’s because any increase in the GST would give online retailers an even bigger unfair advantage, he said.

Francis Tan, an economist at United Overseas Bank Ltd. in Singapore, sees the same urgency for an e-commerce levy.

“It’s pretty important right now, especially when there’s a growing share -- rising at a double-digit pace every year -- of Singaporeans shopping online,” he said. “They just have to plug this gap” between taxing online and conventional stores, he said.

Online shoppers in Singapore generally aren’t taxed for their purchases if they don’t exceed S$400 ($300), Indranee Rajah, senior minister of state for law and finance, said in a November interview. Given how quickly online vendors are changing the way people shop, such a tax change should have been achieved “probably yesterday,” she said.

2. Estate tax
Singapore removed the tax on assets for people who died after Feb. 15, 2008, and it’s possible the government may seek to reinstate the estate duty at some point, said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. The levy fits the government’s goal of broadening the tax base and ensuring that the fees are equitable.

“It does send across a very important message about equitibility -- to make sure that when there’s inter-generational transfer of wealth, some of this is to be redistributed” by taxing part of it, he said.

3. Personal income, corporate taxes
Income tax rates in Singapore are among the lowest in the world, and there may be room to adjust those without threatening the city state’s competitiveness.

The tax rate for top earners, at 22 percent, compares favorably to a 30 percent average across Asia and 34, 35 and 36 percent in Latin America, Europe and North America, according to data compiled by tax and financial advisory firm KPMG LLP.

Call of Duties
Even after U.S. slashes rates, Singapore's taxes are among most attractive globally

Source: KPMG LLP

Notes: Averages provided for Asia, Europe, Latin America. Data reflects U.S. tax changes enacted December 2017.

On the corporate side, Singapore ranks No. 2 in the world in the World Bank’s ease-of-doing business index, including a No. 7 ranking in the “paying taxes” sub-category. The overall ranking is three spots higher than rival Hong Kong.

But with tax competition heating up across the world as the U.S. lowers rates, it’s unlikely Singapore will move in the opposite direction.

Finance Minister Heng Swee Keat, in response to a question on the U.S. tax cuts this week, gave no hints of possible adjustments.

“There is increasing competition in the global arena,” said Heng. “We must continue to develop and strengthen our competitive advantages, by maintaining our pro-business environment and building on our connectivity to the global markets and our strong links” to Southeast Asia and Asian economies, he said.

4. Virtual currencies
Officials like Ravi Menon, managing director of the Monetary Authority of Singapore, have been careful not to cast a judging eye on the hype around cryptocurrencies such as bitcoin, instead clarifying that while there may be investment risk, the authorities won’t regulate them beyond signs of illicit financing.

But Ernst & Young LLP is looking for more clarity on how to treat virtual currencies in tax terms. The Inland Revenue Authority of Singapore needs to address whether the currencies be treated as a commodity for tax purposes, or as a commodity derivative, “given the proposed statutory definition that it is a digital representation of value where the underlying asset is a virtual commodity,” said Amy Ang, a partner and financial services tax leader at Ernst & Young Solutions.
 

halsey02

Alfrescian (Inf)
Asset
#2
I thought they say, we have one of the lowest personal income taxes in the world? You pay Income Tax, then GST, you own a car vehicle quota premium, motor vehicle ( road tax? ERP?), then you smoke & drink- Other Taxes, & use government services - Other Fees & Services..

Don't we realise that, we are paying so much taxes...& all these go to the payment of 1 gardening macik, a 'house' of lackeys, 1 PM etc.. that is a lot of taxes we pay.
 

chongpangchixwings

Alfrescian (Inf)
Asset
#4
I thought they say, we have one of the lowest personal income taxes in the world? You pay Income Tax, then GST, you own a car vehicle quota premium, motor vehicle ( road tax? ERP?), then you smoke & drink- Other Taxes, & use government services - Other Fees & Services..

Don't we realise that, we are paying so much taxes...& all these go to the payment of 1 gardening macik, a 'house' of lackeys, 1 PM etc.. that is a lot of taxes we pay.
Personal income tax is low but the total tax burden is high.
 

Froggy

Alfrescian (InfP) + Mod
Moderator
Generous Asset
#10
If GST goes up it will also mean GST rebates for poor people go up. That's good news for me having enjoyed max rebates every year for past 10 to 12 years. Please increase more GST.
 

eatshitndie

Alfrescian (Inf)
Asset
#15
i've stopped buying things now in sg, except for jimbo and fei loong boxer shorts which have no gst. it's killing retail businesses that have price tags over $69 per item.
 

johnny333

Alfrescian (Inf)
Asset
#17
Next time got to go Airport to do shopping as they are GST-free. Pappies Huat Ah !!!
Do what many are doing. Travel with an empty suitcase & return with the suitcase filled with items e.g. Bangkok is a Favourite for shopping.

I'm doing that with haircuts & dental care.
 

eatshitndie

Alfrescian (Inf)
Asset
#18
Do what many are doing. Travel with an empty suitcase & return with the suitcase filled with items e.g. Bangkok is a Favourite for shopping.

I'm doing that with haircuts & dental care.
for those 2 you don't need a suitcase since you're leaving behind your ah pek "silver" hair and decaying tooth.
 

johnny333

Alfrescian (Inf)
Asset
#19
for those 2 you don't need a suitcase since you're leaving behind your ah pek "silver" hair and decaying tooth.
You obviously have no clue about shopping in Thailand.
The best deals are those with Thai labour e.g. Haircuts, dental services

You can also get good deals on tailored made pants & shirts. I have made several with material from Europe with Thai craftsmanship.

One can also get cheaper spectacles. I get my titanium frame, Hoya multi coated lenses from there. With the VAT refund I paid less than $1k

I'm a regular visitor to LOS so in my case it makes sense for me to get my haircuts & dental services from there & not in Spore.
 

bobby

Alfrescian
Loyal
#20
For a non welfare payout structure, the gahmen seems to be running out of funds too quickly.

Must blame Temasek for their grossly negative returns
 
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