Nav Ad Widget - Mobile

Collapse

Nav Ad Widget - Desktop

Collapse

Announcement

Collapse
No announcement yet.

Reason Y GST cannot be lowered.....

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Reason Y GST cannot be lowered.....

    By Gabriel Chen Dec 8, 2009

    'Leaders must have the conviction to push through what needs to be done, rather than what is politically expedient or populist.'

    LEADERS must have the conviction to do what is right and not what is popular, even if it costs them political points, said Deputy Prime Minister Wong Kan Seng yesterday.

    He told a leadership forum that a crisis may give leaders the platform and momentum to drive difficult reforms, but such tough measures become harder to pursue once the economy rallies.

    Businesses and employees would be reluctant to see the withdrawal of temporary support measures put in place during the downturn, and they might also be wary of moves to tighten credit and strengthen corporate governance.

    'In such a situation, leaders must have the conviction to push through what needs to be done, rather than what is politically expedient or populist,' Mr Wong said.

    He cited a range of populist measures that the Government avoided during the recession - decisions that did earn some criticism from some groups and observers.

    There were calls to temporarily cut the goods and services tax (GST) and Central Providend Fund (CPF) contribution rate for employers - 'appealing arguments which we thoroughly assessed and ultimately rejected', he said.

    The belief was that a lower GST rate would boost consumer spending, while payroll costs would fall with a cut to the employer CPF contribution rate.

    Mr Wong explained yesterday why the Government did not heed both calls.

    He said the fundamental problem during the recession was not one of wage competitiveness, but a slump in global demand. So cutting the employer CPF contribution rate would not have been appropriate.

    'An across-the-board cut in wages was not warranted,' he said, adding that the Government's $4.5 billion Jobs Credit scheme provided employers with temporary relief on wage costs.

    On the calls for slashing the GST rate, Mr Wong said such a move might actually raise business costs, as companies would have to change their systems to adjust to a new GST rate.

    He was speaking at the fifth Asia Economic Summit yesterday, an event that brings together leading strategic thinkers, government officials and corporate chiefs to brainstorm and discuss the strategic challenges that Asia faces and the prospects ahead.

    Other speakers included Penang Chief Minister Lim Guan Eng; Mr Joseph Tan, Credit Suisse's Asian chief economist for private banking; and Mr Wei Jianguo, secretary-general of the China Centre for International Economic Exchanges.

    Mr Lim said the unipolar world, dominated by the United States, has given way to a global economy that is becoming more multipolar in nature.

    Meanwhile, Mr Wei urged leaders to strengthen regional cooperation, actively explore a new growth model, protect the environment and achieve stable long-t:s13:erm development.





    Wat an excellent excuse!
    *****************************
    A bad day of fishing is still better than a good day at the office.


    Just me and my NT...

  • #2
    Wat utter nonsense coming out from Mr Wong who has let a father use e son's passport and he's still around..
    "夫君子之行:静以修身,俭以养德;非淡泊无以明志,非宁静无以致远。" - 诸葛亮

    One should seek serenity to cultivate the body, thriftiness to cultivate the morals. Seeking fame and wealth will not lead to noble ideal. Only by seeking serenity will one reach far. - Zhugeliang

    Comment


    • #3
      hmm.. true also.. no change.. change cost money.. hahahaha
      I'm a super low-baller

      Comment


      • #4
        If the govt. wanted to couldn't they give a tax credit of say 5,000 SGD to each business (with over 1,000,000 SGD total 2009 sales) effected by the change and then lower tax credit for say 3,000 SGD to each business (with less than 1,000,000 to 500,000 SGD 2009 total sales) and then a 1,000 SGD tax credit for all businesses under SGD 500,000 total sales for 2009. And as well to guarantee the GST change be in place for a minimum of Jan. 2010 to Dec. 2012. Thus it makes it fair and it put's it in place long enough to for businesses to recoup any losses with improved sales over a 3 year period?

        Comment


        • #5
          Originally posted by Watchman1957 View Post
          If the govt. wanted to couldn't they give a tax credit of say 5,000 SGD to each business (with over 1,000,000 SGD total 2009 sales) effected by the change and then lower tax credit for say 3,000 SGD to each business (with less than 1,000,000 to 500,000 SGD 2009 total sales) and then a 1,000 SGD tax credit for all businesses under SGD 500,000 total sales for 2009. And as well to guarantee the GST change be in place for a minimum of Jan. 2010 to Dec. 2012. Thus it makes it fair and it put's it in place long enough to for businesses to recoup any losses with improved sales over a 3 year period?

          Comment

          Footer Ad Widget - Desktop

          Collapse

          Footer Ad Widget - Mobile

          Collapse
          Working...
          X