CitiNews: The Disappointing Ang Pow
There was much anticipation about the budget that was unveiled by the Government this afternoon. If you had anticipated a big ang pow from the Government, you would be sorely disappointed. While the budget was, in a way, shaped to help businesses pull through the difficult times, i felt it was a very lacklustre effort be it on a personal level or from a business perspective.
1. Competitiveness
Many have expected the Government to cut corporate tax. But, i guess many more have expected the Government to slash corporate tax rates by at least 2% points. However, the Minister of Finance decided 1% point is enough. Now, instead of 18%, we have 17% corporate tax. Compared to our keenest competitor Hong Kong, we are still one/two percentage point higher. Actually, many countries have moved to increasing GST as a source of Government Revenue rather use Corporate tax to earn revenue. Since we had a 2% points increase in GST, then couldn't they have used it to offset corporate tax as well?
2. GST
As expected there was no cut in GST. Each household would, however, get additional payouts for the GST credits. Our dear Minister even went on to say, this is a more effective way than to cut GST. Our economy is now going down because of low demand. Therefore, shouldn't the Government cut GST and thus encourage people to spend more? Again, the Government see GST as a progressive tax policy. duh
I thought the Government should at least remove GST on basic necessities like staple food such as rice, noodles and also public goods such as Education (including Training and upgrading of skills) and healthcare.
3. Individual Income Tax
We thought this year's extraordinary budget for extraordinary year would be really extraordinary. However, where individual income tax is concerned, that's not the case. 20% rebate, capped at $2,000. Sounds familiar? Yes, that's exactly what was given for Year of Assessment 2008.
4. Business Costs
A lot of measures to help businesses comes in the form of rebates. However, from the limited knowledge that i have, businesses need immediate reliefs during this bad times. We would have thought the Government would probably lower rental (not in the form of rebate but really slashing rental). But still we don't see that.
Maybe there was very high expectation on this budget, that's why many of classmates and I thought the ang pow was really pathetic. We are not asking for freebies during this difficult period but since we are unable to control external factors (e.g. exports), the Government should try more in helping in ways that are within their control.
1. Competitiveness
Many have expected the Government to cut corporate tax. But, i guess many more have expected the Government to slash corporate tax rates by at least 2% points. However, the Minister of Finance decided 1% point is enough. Now, instead of 18%, we have 17% corporate tax. Compared to our keenest competitor Hong Kong, we are still one/two percentage point higher. Actually, many countries have moved to increasing GST as a source of Government Revenue rather use Corporate tax to earn revenue. Since we had a 2% points increase in GST, then couldn't they have used it to offset corporate tax as well?
2. GST
As expected there was no cut in GST. Each household would, however, get additional payouts for the GST credits. Our dear Minister even went on to say, this is a more effective way than to cut GST. Our economy is now going down because of low demand. Therefore, shouldn't the Government cut GST and thus encourage people to spend more? Again, the Government see GST as a progressive tax policy. duh
I thought the Government should at least remove GST on basic necessities like staple food such as rice, noodles and also public goods such as Education (including Training and upgrading of skills) and healthcare.
3. Individual Income Tax
We thought this year's extraordinary budget for extraordinary year would be really extraordinary. However, where individual income tax is concerned, that's not the case. 20% rebate, capped at $2,000. Sounds familiar? Yes, that's exactly what was given for Year of Assessment 2008.
4. Business Costs
A lot of measures to help businesses comes in the form of rebates. However, from the limited knowledge that i have, businesses need immediate reliefs during this bad times. We would have thought the Government would probably lower rental (not in the form of rebate but really slashing rental). But still we don't see that.
Maybe there was very high expectation on this budget, that's why many of classmates and I thought the ang pow was really pathetic. We are not asking for freebies during this difficult period but since we are unable to control external factors (e.g. exports), the Government should try more in helping in ways that are within their control.