SINGAPORE: The goods and services tax system (GST) is designed to take “from the top” and redistribute across the population – a point the opposition should also make clear, Law and Home Affairs Minister K Shanmugam said on Thursday (Apr 24).
Speaking to reporters at the launch of the People’s Action Party (PAP) Nee Soon GRC manifesto, Mr Shanmugam gave the example of a typical family living in a three- or four-room flat that will receive thousands of dollars in support.
“And they don't pay that much in GST. The GST is primarily paid by the top income earners. The top 20 per cent pay most of it,” he said.
“If someone goes to a restaurant and pays S$100, he pays S$9 in GST. If someone goes to a hawker centre and pays S$10, they pay 90 cents in GST. That S$9 is taken by the government and redistributed to those who are having the $10 meals,” he added.
“So it is taken from the top and redistributed across. And I wish the opposition would make that clear, too. I think it’s important you make that clear rather than say some things that are maybe only partially accurate.”
Mr Shanmugam was responding to a question about what residents should consider when evaluating the proposals put forward by the parties contesting Nee Soon GRC – PAP and Red Dot United (RDU).
RDU said earlier that it would also call for GST to be reverted to 7 per cent, which its secretary-general Ravi Philemon said will put more money in people’s pockets.
In the party’s manifesto, launched last Saturday, it also proposed tackling the rising cost of living issues “from the root” with policies that prioritise fair wages and provide job security through a “citizens-first” hiring policy.
Other opposition parties, including the Workers’ Party and the Progress Singapore Party, have also focused on GST in their manifestos, calling for exemptions and rollbacks.
Reiterating points previously made by Prime Minister Lawrence Wong and the Ministry of Finance, Mr Shanmugam said that the support provided this year more than offsets any GST increase.
“And it will continue to offset it over the next five years,” he said.
“The prime minister explained that a large number of households will not feel the impact of the GST because whatever they pay in GST is more than covered by what the government is giving.”
Mr Shanmugam also said that a significant portion of the current inflation is driven by external factors, for instance, the war in Ukraine.
He noted that Ukraine produces 10 per cent of the world’s wheat, while Russia is a major producer of food grains.
“So there are a variety of factors, and we’ve been explaining this to residents. When they ask, this is what we’ll continue to say,” he said.
“Cost of living is a real issue, and the government has a role in softening the impact. That’s why we’ve rolled out various measures this year - cash support, CDC vouchers, and so on.
“As the prime minister has said, we are constantly monitoring the situation. If more needs to be done, more will be done.”
Asked to comment on the anticipated tough fight against RDU, Mr Shanmugam said it is good that the residents have a choice.
He added that he had also spoken with Mr Philemon, whom he had known previously, and that both sides agreed on the importance of offering voters an option.
“We had a very nice, easy conversation. We wished each other well and good luck,” said Mr Shanmugam.
“Our entire team met with theirs – it was all very friendly. I think that’s a very nice way of handling it. We chatted for a while, and said that (ultimately) we all want the best for Singapore.”
The PAP Nee Soon GRC manifesto, titled Nee Soon: Residents First, was unveiled with the full team present – Ms Goh Hanyan, Dr Syed Harun Alhabsyi, Ms Lee Hui Ying and Mr Jackson Lam.
Also standing alongside them were former Nee Soon GRC MPs Carrie Tan and Derrick Goh.
The manifesto addressed several areas of concern for residents, such as rising costs, community care and connectivity.
Further improvements are in the pipeline, including enhanced access to key transport nodes, sheltered linkways, and refreshed homes and public spaces.
Newcomer Ms Goh, a former civil servant, noted that the team was building on a strong foundation laid by the previous MPs, acknowledging their contributions to infrastructure development and improved connectivity in recent years.
“Looking at the manifesto we’re launching today, it’s the result of a collective effort across all divisions. We’ve gathered input from residents about their concerns, needs, and hopes,” she said.
“Everyone wants to make this a far more liveable and welcoming place for residents and their families, and that is what we will continue to do.”
Asked to weigh in on the manifesto, Ms Tan said that it reflects the breadth and depth of how the new candidates understand the needs of residents.
“It is strong on infrastructure plans, as well as community programmes that reflect different aspects and stresses residents face, such as caregiving and mental health.”
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Speaking to reporters at the launch of the People’s Action Party (PAP) Nee Soon GRC manifesto, Mr Shanmugam gave the example of a typical family living in a three- or four-room flat that will receive thousands of dollars in support.
“And they don't pay that much in GST. The GST is primarily paid by the top income earners. The top 20 per cent pay most of it,” he said.
“If someone goes to a restaurant and pays S$100, he pays S$9 in GST. If someone goes to a hawker centre and pays S$10, they pay 90 cents in GST. That S$9 is taken by the government and redistributed to those who are having the $10 meals,” he added.
“So it is taken from the top and redistributed across. And I wish the opposition would make that clear, too. I think it’s important you make that clear rather than say some things that are maybe only partially accurate.”
Mr Shanmugam was responding to a question about what residents should consider when evaluating the proposals put forward by the parties contesting Nee Soon GRC – PAP and Red Dot United (RDU).
RDU said earlier that it would also call for GST to be reverted to 7 per cent, which its secretary-general Ravi Philemon said will put more money in people’s pockets.
In the party’s manifesto, launched last Saturday, it also proposed tackling the rising cost of living issues “from the root” with policies that prioritise fair wages and provide job security through a “citizens-first” hiring policy.
Other opposition parties, including the Workers’ Party and the Progress Singapore Party, have also focused on GST in their manifestos, calling for exemptions and rollbacks.
Reiterating points previously made by Prime Minister Lawrence Wong and the Ministry of Finance, Mr Shanmugam said that the support provided this year more than offsets any GST increase.
“And it will continue to offset it over the next five years,” he said.
“The prime minister explained that a large number of households will not feel the impact of the GST because whatever they pay in GST is more than covered by what the government is giving.”
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Mr Shanmugam also said that a significant portion of the current inflation is driven by external factors, for instance, the war in Ukraine.
He noted that Ukraine produces 10 per cent of the world’s wheat, while Russia is a major producer of food grains.
“So there are a variety of factors, and we’ve been explaining this to residents. When they ask, this is what we’ll continue to say,” he said.
“Cost of living is a real issue, and the government has a role in softening the impact. That’s why we’ve rolled out various measures this year - cash support, CDC vouchers, and so on.
“As the prime minister has said, we are constantly monitoring the situation. If more needs to be done, more will be done.”
Asked to comment on the anticipated tough fight against RDU, Mr Shanmugam said it is good that the residents have a choice.
He added that he had also spoken with Mr Philemon, whom he had known previously, and that both sides agreed on the importance of offering voters an option.
“We had a very nice, easy conversation. We wished each other well and good luck,” said Mr Shanmugam.
“Our entire team met with theirs – it was all very friendly. I think that’s a very nice way of handling it. We chatted for a while, and said that (ultimately) we all want the best for Singapore.”
PAP NEE SOON MANIFESTO
The PAP Nee Soon GRC manifesto, titled Nee Soon: Residents First, was unveiled with the full team present – Ms Goh Hanyan, Dr Syed Harun Alhabsyi, Ms Lee Hui Ying and Mr Jackson Lam.
Also standing alongside them were former Nee Soon GRC MPs Carrie Tan and Derrick Goh.
The manifesto addressed several areas of concern for residents, such as rising costs, community care and connectivity.
Further improvements are in the pipeline, including enhanced access to key transport nodes, sheltered linkways, and refreshed homes and public spaces.
Newcomer Ms Goh, a former civil servant, noted that the team was building on a strong foundation laid by the previous MPs, acknowledging their contributions to infrastructure development and improved connectivity in recent years.
“Looking at the manifesto we’re launching today, it’s the result of a collective effort across all divisions. We’ve gathered input from residents about their concerns, needs, and hopes,” she said.
“Everyone wants to make this a far more liveable and welcoming place for residents and their families, and that is what we will continue to do.”
Asked to weigh in on the manifesto, Ms Tan said that it reflects the breadth and depth of how the new candidates understand the needs of residents.
“It is strong on infrastructure plans, as well as community programmes that reflect different aspects and stresses residents face, such as caregiving and mental health.”
Continue reading...