The case for a 9% GST
INDRANEE Rajah, Singapore's Second Minister for Finance, was spot-on when she observed in Parliament on Monday that the government's cash surpluses from 2011 to 2019 do not reduce the need for the planned increase in the Goods and Services Tax (GST).
A prudent government should pay for today's expenses using today's receipts. It reflects a healthy operating dynamic and preserves inter-generational equity for future generations of Singaporeans. As a matter of principle, we should be allowed to additionally dip into our reserves only in exceptional situations like the present Covid-19 crisis and only as far as necessary.
Raising GST is a straightforward means of ensuring that we only spend what we have.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
‘Competition for talent’ a poor excuse to keep key executives’ pay under wraps
OCBC should put its properties into a Reit and distribute the trust’s units to shareholders
Why a stronger US dollar is dangerous
An overstimulated US economy is asking for trouble
Too many property agents? Cap commissions on home sales
Time to study broadening of private market access