A total of $990 million were received as from the 2% hike in GST in 2007, while the government has returned $640 million to Singaporeans as a form of GST rebate. I remembered that the increase in GST was meant to help the poor, although I am not quite sure how that is going to happen. However, I guess the worst hit is always the "sandwich" class – which pays tax like everyone else but get no assistance or minimal rebates. Sigh.

THE Government earned an extra $990 million last year from the two-percentage point hike in Goods and Services tax.

The bulk, $540 million, came from local consumer spending, while the remainder was from foreigners.

A large portion of the collection went back to Singaporeans.

They received a total of $630 million in cash, to offset the GST increase to 7 per cent in July 2007.

With other measures like utility rebates, to help people adjust to paying more GST, the Government will spend $1.17 billion by the end of fiscal year 2007 on Mar 31 this year.

Read the full story in Wednesday’s edition of The Straits

Article obtained from straitstimes.com on 22nd January 2008

Reader's Comments

  1. Tianhong | January 22nd, 2008 at 10:25 pm

    part and parcel of life isn’t it?

  2. Vandalin | January 23rd, 2008 at 12:11 pm

    Always has been the middle class that supports the entire economic structure.

    The rich have tax breaks, the poor don’t have money to be taxed.

    Good move by the Sg gah-men to have this structure of society.

  3. andrewong2024 | January 23rd, 2008 at 4:34 pm

    6 months = $990 million and they give only $360 million.

    But they forgot that the 7 per cent GST is for life and years for us to bear while they earn more.

    I think Singaporeans would rather give back the $360 million to the gahmen if they had the choice, which of cos we weren’t.

  4. jed low | January 25th, 2008 at 12:14 am

    Hi…i’m not really used to read up such stuff on these things. But i have query, i know that the government has also given out progress package to help the lowly income familes. But i have thought about those residents who are living in private but their income are very low. Take me for exmaple who is currently living in a private estate but somehow our income are jus lower than $1000 for more than 10 years already. I believe there will be people who are in the same position as i am. Where are they going to get their help from?

    If anyone knows maybe ur suggestions could really help out too. Thank you.

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