Budget 2007

[MSth08]

GST rate to rise to 7% from July 1
Posted: 15 February 2007 1735 hrs

The GST rate will be increased by two percentage points to 7% from July 1st, said Second Finance Minister Tharman Shanmugaratnam in Parliament.

In his Budget Statement on Thursday, he said it is prudent to implement the increase now in one step, while the economy is still strong.

This will raise additional revenues of $750 million this year and $1.5 billion per year going forward.

Singaporeans will be compensated with a substantial offset package.

Mr Tharman said the GST Offset Package would cost the Government $4 billion in total over five years.

Of this, $1.8 billion will be given out as cash in the form of GST Credits.

All adult Singaporeans will get them in annual instalments.

The amount will depend on a person's assessable income and the annual value of his home.

The average Singaporean household will get several years' worth of GST offset.

Lower income Singaporeans will get larger GST Credits of up to $1,000 in four instalments of $250 per year over four years.

The top income group, earning $100,000 a year, will get $100.

NS men and NSFs will get an additional $100 of GST Credits.

The first instalment will be paid out on July 1st, at the same time as the GST increase.

Older Singaporeans will also get more GST credits.

Two thirds of the money will be given in cash and one-third will go into their Medisave on July 1 each year.

Utilities-Save, Service and Conservancy charges and rental rebates for eligible households will be extended for five years to March 2012.

The government will also give a one-off property tax rebate of up to $100 per year in 2008 and 2009 for all owner-occupied residential properties.

This will benefit about one million property owners, with three and four-room HDB flat owners paying little or no property tax.

For those with children, $400 will be credited into a secondary school child's post-secondary education accounts in 2008 and $400 in 2009.

Lower income families with young children will get increased financial assistance for kindergarten and childcare.

More allowance too for pensioners, their gross pension ceiling raised from $1100 to $1140 a month.

The government will give $10 million to the Public Transport Fund and will also top up the CCC ComCare Fund by $5 million over five years.

To help lower-income families, the Government will provide $2 million over five years to self-help groups and $3 million for government-funded VWO programmes.

Summarising, the second Finance Minister said most Singaporean households would receive the GST Offset package.

The benefits will be several times the extra GST they will have to pay each year.

Four roomers will receive an average of seven years of offset while the lowest income households will receive the most - for instance, two roomers will get 16 years' worth. - CNA/ch

credits : channelnewsasia.com

[Dio]

sound so nice. 1k gst package in 4 years.

might as well say 250/year la

[Hades]

sound so nice. 1k gst package in 4 years.

might as well say 250/year la
That only applies to lower income household :(

[Dio]

i rather they hold another GE and give us another PP instead:supz:

[Hades]

i rather they hold another GE and give us another PP instead:supz:
If yr pay is within 24k - 100k anually, u will get $800. Will get them in 4 yrs instalment :)

Not forgetting us NS men/NSF, additional $100 for males :D

[cutieboy86]

all above 21yrs old will get money again

[cutieboy86]

Singapore unveils Budget to grow economy, help low-income workers
By Asha Popatlal, Channel NewsAsia | Posted: 15 February 2007 2013 hrs


Photos 1 of 1





The Singapore government unveiled a Budget on Thursday that is set to grow its economy and provide long term help to its lower income workers.

Its Goods and Services Tax is going up to 7 percent from July this year.

But to balance this, the government is introducing a $4 billion offset package to be given out over five years.

To boost business, the corporate tax rate is also going to be cut from the current 20 percent to 18 percent.

A 3 percent Goods and Services Tax was first introduced in Singapore in 1994.

This went up to 5 percent in 2004 and will now go up to 7 percent from July this year.

The hike will eventually add $1.5 billion to the government's kitty each year.

To ease the pain of increased costs, cash offsets of up to $1000 will be given to all Singaporeans aged 21 and above over five years.

The amount will depend on two factors - the person's income and home type.

With an ageing population, its senior citizens aged 55 and above will also get an additional cash bonus - up to $1,000.

Meanwhile, to help the middle class, employers will have to contribute 1.5 percentage points more to the Central Provident Fund, a national savings scheme.

But this is only for those earning above $1,500.

While steering away from welfarism, this Budget is significant for introducing measures that will make help for lower income older workers, a more permanent feature.

They will receive monetary help as long as they remain employed.

The government is introducing a Workfare scheme for older low wage workers.

This group will also contribute less to the Central Provident Fund or CPF.

This means they will have more take-home pay and be more employable.

The shortfall in CPF will then be balanced off by higher Workfare income supplements, put in by the government.

Mr Tharman says: "Strengthening our social security system and providing for the needs of older Singaporeans will require the government to spend more in future. This means we will need additional revenues. We cannot raise direct taxes.

"Countries all over the world are reducing corporate and fiscal income taxes to continue to attract talent and investments and maintain strong incentives for the people to excel, we will in fact have to lower our direct taxes further over time. We will therefore raise additional revenues by extracting more income from our reserves and raising the GST."

For businesses, the corporate tax will be cut to 18 percent, from the current 20 percent, by Year of Assessment 2008.

This will bring it closer to Hong Kong's 17.5 percent rate. - CNA/ch

[rookiyong]

There is already a similar thread on this.

Merged. :salute:

[Urahara_Store]

wah sian :( my convocation is 27 july that means i am only regarded as a worker on that day and afterwards. so got money? =)) I defer ICT wor but still regarded as NSman right lol. hmm dont know why i feel that they are making things very very complicated so it seems they give alot :red:

[Miracle]

Actually I think the S$250 for lower income is okay. If you consider the amount you spend every month, it should offset it for the lower income. But most of us are stuck in the middle so we are really on the losing end...

[bingren]

$250 a year = $20.83 a month = 68 cents a day

[kazuki]

Calculate it this way, u will be more worried...

Assuming u are receiving $1000 pack.

$1000/4years = $250 per year

$250 / 2% = $12500 per year

$12500 / 12mths = $1042 per month

Ask yourself. Is your annual expenditure anything less than $12500?

Even if dun, no need to be too happy first. Dun forget the 7% is here to stay. So even if u think u spend less than $1042 per mth, what will happen the yrssss after the 1st 4yrs which u recieve the gov's help?[-X

[Miracle]

Calculate it this way, u will be more worried...

Assuming u are receiving $1000 pack.

$1000/4years = $250 per year

$250 / 2% = $12500 per year

$12500 / 12mths = $1042 per month

Ask yourself. Is your annual expenditure anything less than $12500?

Even if dun, no need to be too happy first. Dun forget the 7% is here to stay. So even if u think u spend less than $1042 per mth, what will happen the yrssss after the 1st 4yrs which u recieve the gov's help?[-X

If you are receiving the full amount, your annual expenditure is definitely below that S$12,500. You can't possibly be spending all of your pay.

After four years, we can expect GST to raise again, so no worries about that for now coz there will definitely be new packages to help the poor.

That's why I also mentioned that those middle class will be hit the most coz they will not be getting much to cover themselves.

[shadowdancer]

If yr pay is within 24k - 100k anually, u will get $800. Will get them in 4 yrs instalment :)

Not forgetting us NS men/NSF, additional $100 for males :D

They already started on those who enlisted on Jan 07. Those recruits got $450 instead of $350

[cyc]

They already started on those who enlisted on Jan 07. Those recruits got $450 instead of $350

wow... now recruit also get $450 ah?:moneyface
last time, I only get $200 as a coporal... more than 100% inflation siah

[Dio]

wow... now recruit also get $450 ah?:moneyface
last time, I only get $200 as a coporal... more than 100% inflation siah

last time police wear shorts and laksa cost 5c nia. cannot compare.

Anyway, since this is projected for 4years, does that mean that for the next 4yrs the gst won't rise?

or do they intend to raise the gst to 11% 4 yrs later... >_>

[piglet]

Anyway, since this is projected for 4years, does that mean that for the next 4yrs the gst won't rise?

or do they intend to raise the gst to 11% 4 yrs later... >_>

GST might not increase, but cannot gurantee that transport, ERP, electricity and etc will not increase hor....this is just the beginning for us to enjoy life but later on, we will have to suffer already, sigh...

[kazuki]

If you are receiving the full amount, your annual expenditure is definitely below that S$12,500. You can't possibly be spending all of your pay.

After four years, we can expect GST to raise again, so no worries about that for now coz there will definitely be new packages to help the poor.

That's why I also mentioned that those middle class will be hit the most coz they will not be getting much to cover themselves.

True if the receiver earns less than $1500, he/she MIGHT spend not as much.

But after 4yrs, who can promise us whatever help is going to come along?

In the 1st place, if they have wanted to jack up the GST, it doesnt make much sense if they keep billions to help the public even after the 4yrs. The most direct reason for a gst increment is to earn money, so no point one side money into pocket, the other side still have to take out...[-X

The typical senerio we sg is always seeing. Whenever they need to take something from us, they will try to "convince" ppl with "sweets" first.

I am sure everyone heard of this before.

"I give you $1 now, later day i will take back $2 from you!"

[Koo]

S$10,046,055,520 FY06
S$10,578,179,040 FY07

Change From FY06 to FY07
S$532,123,520

http://www.singaporebudget.gov.sg/budget_2007/revenue_expenditure/attachment/MINDEF_AEE2007.pdf

SG has never seen a drop in defence spending before not even in the years of recession. Many countries have cut down on defence budget as they try to improve in other sectors. I see our budget every years is ........... show you the money but not working properly.......... so better off strave you of the money and make you cry.

[Miracle]

But after 4yrs, who can promise us whatever help is going to come along?

There will be another GE coming, so I think they will do some stunt and promise this and that again. :whistling

SG has never seen a drop in defence spending before not even in the years of recession. Many countries have cut down on defence budget as they try to improve in other sectors. I see our budget every years is ........... show you the money but not working properly.......... so better off strave you of the money and make you cry.

From the way I see the money being used in NS, I seriously think the budget for defence can be used in a more wiser manner and not increasing the allocation for it...

[Hades]

I am sure everyone heard of this before."I give you $1 now, later day i will take back $2 from you!"

At least they given out the package. Unless u hoping for "I dun give u any cents but u still need to pay back $2" -_-"

So u conclude so much about them also no use. U still got to LL accept their ways of doing :| At least, they giving us the package lah, better than nothing :)

[kazuki]

At least they given out the package. Unless u hoping for "I dun give u any cents but u still need to pay back $2" -_-"

So u conclude so much about them also no use. U still got to LL accept their ways of doing :| At least, they giving us the package lah, better than nothing :)

The whole point behind giving one and taking two has its reason.

They know that they can never take something for free from its ppl. That will only cause further aggression among them.
The "one" is meant to pacify its ppl so that they wont be grumbling that much when "two" is taken from them.
U can say that "they can always take one and then not give. Either ways, they still earn one mah"
But there is still the difference. Taking "one" for the sake of "one", and "taking two and giving one, resulting one" are of totally different status, though both methods still earn the "bosses" one.
The former will be too harsh to impose on ppl.

Trust me, they will never try to take without giving. This is to buffer away your pain and make u try to forget they are here to suck u dry.

As for why most ppl LL accept it. I disagree with that. Why are there ppl migrating out of sg? It might not all be coz of such cost matters, but also other issues.

Two more rounds of GE, just two more rounds. Trust me, by then the game will be interesting and a fair fight should be coming in...:sing:
But of course i dun really hope to drag this into polictical issues and get sensitive, that can only result in a thread locking...:|

[Koo]

Saturday February 17, 6:17 AM

56-year-old Mabel Ong held up as example during Budget Statement


SINGAPORE : 56-year-old Mabel Ong stepped into the limelight in Singapore's Budget on Thursday.
She was held up as an example of how many Singaporeans have a positive attitude when it comes to work and skills upgrading.

And she is one of those who will benefit from the help the government is providing to low income workers.

The mini-bar supervisor earns $800 monthly and lives with her elderly mother in a three-room flat. L-)


"A fine example" not to follow, who know she has some additional benefits for this "stunt". For me, I never trust the budget. Singapore too........... to work in confine of the budget set ask around and you know.;)

[jdelpiero]

56-year-old Mabel Ong held up as example during Budget Statement

SINGAPORE : 56-year-old Mabel Ong stepped into the limelight in Singapore's Budget on Thursday.

She was held up as an example of how many Singaporeans have a positive attitude when it comes to work and skills upgrading.

And she is one of those who will benefit from the help the government is providing to low income workers.

The mini-bar supervisor earns $800 monthly and lives with her elderly mother in a three-room flat.

Even though grateful for the extra money, Mabel said she would rather not receive any hand-outs.

"I am happy... but I think I better upgrade myself, so that my salary increment will be bigger and I'll get more pay, then I can spend more happily. Don't wait for others to help you, but earn it yourself," said Mabel, a mini-bar supervisor at Oriental Hotel. - CNA /ls

[hoodlum]

So the GST offset of 1K over 4 years.. so next 4 years no ang bao?? if tts the case.. they are realli smart man..

last yr i didnt make it for PP as i was not 21 at dec 05.. nw tt i made it.. PP is no more.. and im gonna ROD on Jun 07.. does it mean im nt eligible for NS bonuses? i dun tink im under Ns-men rite? ROD means civilian?

As for the packages... every year make u happy.. GE year make u super happy.. and makes u tink.. if you can't fight them, join them..

[gogetter]

After 4 years will be election again.

[cutieboy86]

juz nice for elections in 4 yrs time... haha... then will have PP again

[hoodlum]

Actually I rather they raise the GST one shot.. to whatever they want and hang it there. In other countries pple pay much more tax than us.. but as such, their pay are also adjusted to handle these taxes..

for us.. the GST is increasing slowly.. thus pple dun realli feel too much pain.. as such, the salary is not increased, but money is gradually being sucked.. slow and painful death.

[cyc]

last time police wear shorts and laksa cost 5c nia. cannot compare.

police wearing shorts is not my era, they're oready wearing long pants when I was born... anyway, laksa cost $2 when I was in the army :P

[Dio]

police wearing shorts is not my era, they're oready wearing long pants when I was born... anyway, laksa cost $2 when I was in the army :P

ya la. now where can still find $1.50~ $2 noodles/rice (except my place.)

now minimum is $2.50~$3:laugh:

[des_yeo03]

Keep to topic guys, this is not a thread bout police wearing shorts or how much laksa cost then and now....:duh:

As for the raise in GST, ppl will stop complaining soon enough, just like any other law that the gov implements....IMHO....:)