GST hike ... I am getting poorer and poorer

The garment has announced that there will be an increase of Goods and Services Tax (commonly known as GST in Singapore) from the current 5% to 7% next year. The reason given by the garment is that the revenue collected will be used to help the lower income group and boost our economy.

But with the increase in the GST, the taxes paid by working adults (like me) in Singapore will become higher and add to our burden. And hor, the worst thing is that our annual salary increment is less than 2% leh.

Aiyo, like that how to retire and how to save??? All the savings will be used to pay the taxes :(

And yes, it will definitely boost the economy and expenditure of S'poreans before the increase kicks in. Becos' everyone will rush to buy big items like houses and cars before the increase. So you see. After that, I don't noe liao.

I think it will be cheaper to buy things in JB now. Argghh... the jams at causeway will be worst now, cos' Singaporeans will start to flock over to JB after the GST hike.

Received this email on the GST, and you do the maths. Does it make sense?
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Example 1
In 2006, if after rebates etc and your net taxable income is $60,000,the income tax you need to pay is $2,700 (8.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480

Total=$3,180 in Tax paid.

In 2007, if after rebates etc and your net taxable income is $60,000,the income tax you need to pay is $2,600 (8.50%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672

Total=$3,272 in Tax paid.

From $3,180 to $3,272, the effective increase is 2.89%.

Example 2
In 2006, if after rebates etc and your net taxable income is $400,000,the income tax you need to pay is $61,650 (21%). If you spend $4,000 amonth on needed goods and services, the GST paid for 5% will be $2,400

Total=$64,050 in Tax paid.

In 2007, if after rebates etc and your net taxable income is $400,000,the income tax you need to pay is $58,700 (20%). If you spend $4,000 a month on needed goods and services, the GST paid for 7% will be $3,360

Total=$62,060 in Tax paid.

From $64,050 to $62,060, the effective decrease is -3.11%.

Example 3
In 2006, if after rebates etc and your net taxable income is $25,000,the income tax you need to pay is $187.50 (3.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480
Total=$667.50 in Tax paid.

In 2007, if after rebates etc and your net taxable income is $25,000,the income tax you need to pay is $175 (3.5%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672

Total=$847 in Tax paid.

From $667.50 to $847, the effective increase is 26.89%.

The fact is: The poorer you are the more the GST is going to make you poorer.
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You do the maths .... No wonder I am getting poorer and poorer .. $$$????

Bo-chap Singaporeans

Itz supposed to be my lunch time, but now I am at home trying to download some patches from my vendor's website because my company Internet link keeps breaking my download. (Sign...)

Went to Causeway Point yesterday to buy some groceries and was in the midst of a fire. The fire alarm was ringing and ringing all the way, but the shoppers bo-chap like and still continue to shop. My sis and me quickly select all the items and make payment. On our way out, we saw firemen and smoke coming out. We very kia-si, so did a detour to get to the bus-stop. Along the way, we still see shoppers strolling and diners still having their dinner like nobody business. Sign... sometimes we wondered whether Singaporeans are really kiasu or kiasi.

The 10 o'clock news reported that the shoe shop (Charles and Keith) was on fire, luckily nobody was hurt in the fire. But the whole shopping mall was wet in the news, it shows the fire extinguisher was working (ha ha).

OK. My download finished liao. Am going to copy everything to my portable drive and go back to office.

P/S: Itz for my website project. Look out for itz launch soon ...