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23 May 2019
Ministry of Finance
Suggestion View - 168
How to abolish GST

GST brings in $11 billion of revenue to the govt. It also adds a heavy cost to business to collect and account for the GST. This increases the cost of living by up to 10% (based on my estimate). 

I prefer the govt to abolish GST and find some other ways to replace it, if necessary. This will bring down the cost of living.

Here are some ways for GST to be abolished:

a) The govt already has sufficient revenue from other sources to allow GST to be abolished and still have a budget surplus, although it is of a smaller sum.

b) The govt can exercise more control over defense and infrastructure spending and save a few billion dollars a year. 

c)  Compared to other countries, Singapore has a large source of revenue from land sale, vehicle taxes (COE, ERP) and foreign workers' levies. These revenue are much more than is raised by GST.

d) If additional revenue is necessary, it can be raised by GST on selected luxury items that are purchased by wealthy people.

We can abolish GST to bring down the cost of living of living by up to 10%, and still have a modest budget surplus. We should not increase GST to 9% and add to the burden of the people. Already, most people find the cost of living to be too high and they face financial distress.

Tan Kin Lian

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