Wednesday, November 15, 2006 / 8:49 PM
Lee Hsien Loong told Parliament that the GST will be raised from 5 percent to 7 percent to finance social programs and help people with low income. The details of the tax changes will be announced in the budget in February.
Mr Lee explained that the hike was necessary to finance the enhanced social safety nets, needed to help the lower income group and he emphasised that the offset package would more than counter the rise in GST.
This is akin to using the public money to save the poor, which sounds ideal, especially to Government. An additional 2% on the country consumer spending can be quite substantial. PM Lee explained that it is saving for rainy days.
We need to know where the money is going to, how it is going to help the needy. I am sure that the SMRT suicidal incident has rang a bell that some people are still left out in the rain. Can the fund reach the places where it is supposed to? To avoid people taking advantages of the help schemes, we need to scan through the group who is going to receive the help. It is definitely more viable to help those who could not rather than those who would not help themselves. And all Singaporeans should know where and how to apply for the fund, thus making sense of the help schemes. It is as good as useless if no one is able to receive any help though the schemes are present.
Health Minister, Mr Khaw Boon Wan, gave an assurance to the lower-income that their hospital and polyclinic bills will not be affected by the proposed GST hike. At polyclinics, the subsidy for PRs has been cut to 25 percent, half of that given to Singaporeans. Foreigners get nothing. This way, the non-Singaporeans’ subsidy are cut to provide more funds for the citizens.
Lee also said income tax rates could be lowered in future, 938Live reported.
Quotes are taken from channelnewsasiaLabels: Social
