1st SS project-increase in GST

Today's main idea on the topic of Singapore's Policy : Raise In GST

Report: Singapore to Raise Goods and Services Tax to 7 Percent to Fund Social Programs
SINGAPORE (AP) -- Singapore's goods and services tax will be increased by 2 percentage points 7 percent to finance social programs and help people with low incomes.

Lee said the GST report would come with a package weighted in favor of lower income Singaporeans.
"When we implement the GST increase, it's not a GST increase, it's a package which will fully offset the impact of GST for these groups and begin to strengthen the safety nets and tilt the balance in favor of the lower income Singaporeans," said Lee, according to radio station 938Live.
Lee also said income tax rates could be lowered in future, 938Live reported.

my thoughts :

I would think that this is not a very good policy to people of average income who don't get to benefit from this increase-if it is to be implemented to help the lower income Singaporeans.But definately good for the lower income families.

Think about it.SHOPPING WOULD BE MADE MUCH MORE EXPENSIVE.This is bad bad bad for average income Singaporeans who want to pamper themselves with shopping.

Think about it again.For example,the retail price for a blouse in perhaps 77th Street or Esprite is $50(includes the original 5%GST)without discount before the increase in GST policy is activated.When there is a 10% discount,the blouse would then cost $45.HOWEVER, after GST is increased to 7%,the retail price of the same blouse before discount would cost $51.50,and when there is a 10% discount,it would still cost $46.35.the difference isnt a lot,but imagine if one were to go on a NO- RESTRICTIONS- SHOPPING- SPREE.the total expenditure that goes to GST alone would then be enough to buy perhaps a new pair of shoes.

Put it simply.A 10% discount before the policy would sincerly mean a cut in expenditure.But a 10% discount after the policy would mean the original price of the item before the policy,which means there is NO discount at all actually.How ironic.Cost of living would be high high high high ever since.This might mean immigration and standard of living to deteoriate because people could not afford to live a lushful life with the increase(because i totally expect it to increase even further in future.)

Although this increase would bring about an increase in budgetting,but all in all it benefits the poor and unaffordable Singaporeans.Therefore,i suppose we can't do anything else but to follow the law.:) We should help the needys if we could.(yar,help mee!:D)

yeppx.the above is my submission for SS blogging project =X