GST Hike - Part 1
Quick food for thought. Maybe right, maybe wrong. This is just a thought flying right through my mind right now.
If Singapore is moving towards a service-based industry, wouldnt a GST hike mean a direct hit on the disposable income of the common folks (and I dont even have to mention the POOR)?
As we create more service-based jobs and opportunities, we are hoping that people will start to spend more on goods and services provided right. There is the IR. There are also the internet based or customised customer services set up by many local SMEs, which make up a fair bit of our workforce. If prices for such services increases, wouldnt people start to tighten their pockets in terms of luxurious expenditure? To be frank, all these so-called "value-added" services are bullshit. There are not really necessary and can be considered as luxurious.
And usually who do these services companies hire as their part-time or full time staff? The lower income group, aka POOR. Why? Cos they can sufficiently find their job placements in blue-collar jobs as compared to the white-collar and professional jobs.
My logic is this: You hit these service based companies, you indirectly hit the POOR who depends on these companies for jobs. Companies either absorb the GST hike (which means lower profits, there is need for cutbacks and wages is one area to look at, or having more part-timers rather than full-timers cos you dont need to provide full range of fringe benefits for PT staff). The POOR are the ones who usually depend on the companies' fringe benefits to offset their own expenditure on medical and health costs. Who really benefits?
I hope the "PACKAGE" that is to be dished out to the POOR is really comprehensive, if not, this whole exercise will only put us in greater shit.
I have more comments and insights about the POOR, partly due to my experience at my old working place. I know about the flaws in the system, but I shall reserve my comments sans I get arrested.
Disclaimer: the above comments are based on inconclusive information and observation, and are made based on the limited understanding of this writer. So please read and commment on your own discretion.
If Singapore is moving towards a service-based industry, wouldnt a GST hike mean a direct hit on the disposable income of the common folks (and I dont even have to mention the POOR)?
As we create more service-based jobs and opportunities, we are hoping that people will start to spend more on goods and services provided right. There is the IR. There are also the internet based or customised customer services set up by many local SMEs, which make up a fair bit of our workforce. If prices for such services increases, wouldnt people start to tighten their pockets in terms of luxurious expenditure? To be frank, all these so-called "value-added" services are bullshit. There are not really necessary and can be considered as luxurious.
And usually who do these services companies hire as their part-time or full time staff? The lower income group, aka POOR. Why? Cos they can sufficiently find their job placements in blue-collar jobs as compared to the white-collar and professional jobs.
My logic is this: You hit these service based companies, you indirectly hit the POOR who depends on these companies for jobs. Companies either absorb the GST hike (which means lower profits, there is need for cutbacks and wages is one area to look at, or having more part-timers rather than full-timers cos you dont need to provide full range of fringe benefits for PT staff). The POOR are the ones who usually depend on the companies' fringe benefits to offset their own expenditure on medical and health costs. Who really benefits?
I hope the "PACKAGE" that is to be dished out to the POOR is really comprehensive, if not, this whole exercise will only put us in greater shit.
I have more comments and insights about the POOR, partly due to my experience at my old working place. I know about the flaws in the system, but I shall reserve my comments sans I get arrested.
Disclaimer: the above comments are based on inconclusive information and observation, and are made based on the limited understanding of this writer. So please read and commment on your own discretion.