Law and Home Affairs Minister K Shanmugam stated on Thursday ( Apr 24 ) that the goods and services tax system ( GST ) is intended to take “from the top” and redistribute across the population. This should also be made clear by the opposition, which the government should also make clear.  ,
Mr. Shanmugam gave an illustration of a typical family living in a three or four-room apartment that will receive thousands of dollars in support while speaking to reporters at the launch of the People’s Action Party ( PAP ) Nee Soon GRC manifesto.  ,
” And they don’t spend that much in GST,” she continued. The top money earners are largely responsible for paying the GST. The bottom 20 % of it is paid for, he claimed.  ,
” He pays S$ 9 in GST if somebody goes to a restaurant and pays S$ 100. They pay 90 cents in GST if they visit a stall center and make the payment of S$ 10. That S$ 9 is taken by the government and redistributed to those receiving the$ 10 meals, he continued.
” So it is taken from the bottom and redistributed across. And I wish the criticism had the ability to clarify that. I believe it’s important to make that clear rather than just say some things that are perhaps just half true.”
What if people take into account when evaluating the proposals made by the parties contesting Nee Quickly GRC – PAP and Red Dot United ( RDU) were Mr. Shanmugam responding to a problem.
RDU previously announced that it would call for the GST to be reduced to 7 %, which its secretary-general Ravi Philemon claimed may increase the amount of money in the hands of the electorate.
In the group’s declaration, which was released last Saturday, it also suggested starting from the source with policies that prioritize good wages and provide employment security through a” citizens-first” hiring plan.  ,
Another opposition parties have called for deductions and rollbacks in their proposals, including the Workers ‘ Party and the Progress Singapore Party.
Mr. Shanmugam made the same remarks that were originally made by Prime Minister Lawrence Wong and the Ministry of Finance, reiterating the claim that any GST increase would be more than offset by the help provided this season.  ,
He added that it will continue to compensate it over the next five times.
The primary secretary stated that a large number of homeowners won’t experience the effects of the GST because what they pay in the GST is more than what the government is offering.