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



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