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11 Jul 2019  (605 Views) 
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Movement for change


Exempt essential products from GST
Many people are prepared to continue with GST, but they like essential products to be exempted. This is not as easy as it appears.

What are the essential products? I suspect that they like these products to be exempted from GST.

a) food, milk, etc
b) medicine and medical expenses
c) school books and other school expenses
d) public transport
e) utilities, such as water, electricity, gas

Maybe there are other categories.

Maybe, it is better to ask - what category of products should be taxed heavily? Here are the likely products:

a) cars
b) investment property, exclude the primary home
c) luxury goods, such as handbags, branded watches
d) cigarettes, tobacco, liquor

Surely, these items are already adequately taxed, without GST. Maybe the tax can be increased?

How about extending the tax to the following, which are now exempted from GST and other taxes?

a) plastic products that are harmful to the environment
b) entertainment
c) stock market profit

I want to really explain my point about GST. If we exempt essential products from GST, there is really no need for GST at all.

The products that need to be taxed are already being taxed directly and not through GST. If a higher rate of tax should be collected, it can be done directly. Some of the items that are not taxed now could be added to the direct taxes. 

If there is a need to raise additional taxes, it is better to increase the rate of tax on high incomes, e.g. income above $100,000 a year. These wealthy people can afford it.

I want the people who like to see GST being exempted from essential products to join me in asking for the total abolishing of GST and to replace with direct tax on specific products and an increase in tax on income above $100,000.

If we abolish GST, we can save on the cost, now incurred by GST, to collect GST. This cost is added to the prices paid by consumers, on top of GST itself.

Tan Kin Lian

Vote - do you agree that GST should be totally abolished?
 


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