GST

So, the government has decided to raise GST to 7% from 5% in less than 3 years by 2007. This does not simply means a higher cost of living for Singaporeans. There is a greater implication here: things become less affordable for both locals and tourists and of course, for a country which depends greatly on the tourism sector to boost our GDP, we're in for some serious trouble if we continue hiking the goods and services tax every other year. Consequently, this will also further reduce the popularity of the government among the heartlanders. Let's also not forget the already infamous PAP acronym - Pay And Pay - and the ever-favoured term: blood suckers.

But if you were to consider this policy from another perspective (not from your standpoint, but think macro), you would probably be able to understand the standpoint from someone up there. A country requires millions of dollars to sustain growth and development, to keep the country running, and people living comfortably (of course, this again is subjective). And there is probably one legitimate source of income for the country - taxes. Now, if there is no GST in Singapore to sustain growth, what would you have said if you are asked to pay 16% income tax per annum in the case of Hong Kong, or 20% income tax per annum as in Australia or 30% within the EU?

So, where do you think the edusave fund for every student below 18 years old come from? From heaven? How about the school fees of about S$30 every month for anyone in a government or government-aided school? What about the HDB flats that most of us live in (that cost around S$250,000 - S$350,000 for an average 5-room flat)? Do you really think US$180,000 can get you a 1000-square-feet apartment somewhere else? Let's talk about the S$1.50 you pay when you have to take the MRT to Orchard Road. Have you ever paid more than S$5 to take a 45-minute bus or train ride just to go to town? Think again.

Are you looking at things only from your perspective?