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- Jan 5, 2010
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Review GST to avoid 'tax on tax': Case
OMG: CASE is just barking up the wrong tree.
[pict sauce]
For small ticket items (ciggies, petrol, alcohol, domestic water bills): GST can be tax-upon-tax for the good of people especially for lifestyle discretionary: e.g. stop smoking, drive less frequently, take shorter bath, get drunk less often etc is okay. Only bigger ticket items/ licensing schemes managed by other ministries: e.g. housing, new car can have separate tax/ regulatory regime for e.g. COE, ARF, insurance, stamp duty, that is more akin to a licensing / regulation scheme (not a typical 'goods/ services' per se).
Does CASE want overall cost of living to increase if gahmen accedes to its ban GST-on-tax policy for smaller items (increased size of bureaucracy)/ does CASE want receipts to be excessively long (higher compliance costs for clarity of presentation). Yes, GST magnifies the 15-20 cents petrol price duty increase by 7% (actual effect is= 16.05- 21.4cents/liter increase after 7% GST) and Minister should have mentioned it (to remind the lay public of how the final calculation is) but for convenience sake: GST-on-tax for smaller items is the way to go.
Pioneer package, silver-bonus, medishield-life are all very costly benefits for senior etc Singaporeans (and inundated with moral hazards).
In this case, CASE has barked up the wrong tree.
OMG: CASE is just barking up the wrong tree.
For small ticket items (ciggies, petrol, alcohol, domestic water bills): GST can be tax-upon-tax for the good of people especially for lifestyle discretionary: e.g. stop smoking, drive less frequently, take shorter bath, get drunk less often etc is okay. Only bigger ticket items/ licensing schemes managed by other ministries: e.g. housing, new car can have separate tax/ regulatory regime for e.g. COE, ARF, insurance, stamp duty, that is more akin to a licensing / regulation scheme (not a typical 'goods/ services' per se).
Does CASE want overall cost of living to increase if gahmen accedes to its ban GST-on-tax policy for smaller items (increased size of bureaucracy)/ does CASE want receipts to be excessively long (higher compliance costs for clarity of presentation). Yes, GST magnifies the 15-20 cents petrol price duty increase by 7% (actual effect is= 16.05- 21.4cents/liter increase after 7% GST) and Minister should have mentioned it (to remind the lay public of how the final calculation is) but for convenience sake: GST-on-tax for smaller items is the way to go.
Pioneer package, silver-bonus, medishield-life are all very costly benefits for senior etc Singaporeans (and inundated with moral hazards).
In this case, CASE has barked up the wrong tree.
