GST
Television news: “Starting from 1 st July 2007, the GST will be increased to 7%.”
WaWa: What is GST, PaPa?
PaPa: GST stands for Goods and Services Tax .
It is a small charge for the supply and importation (the activity of buying and bringing in goods from overseas into Singapore) of most goods (for example, a pair of sneakers) and services (for example, education).
WaWa: Uh, You're confusing me, PaPa.
PaPa: (Smiles) GST is a tax that is collected, by a retail store, from consumers like you and I.
WaWa: (frowning) Hmmm… But where does all the money from GST go to?
PaPa: The Government uses the money to:
• help our lower-income friends to live a better life;
• help our elders tackle the rising costs of their healthcare;
• invest in our education;
• build better homes for us;
• fund the researches of our experts so that they can come up with new discoveries that benefit us.
WaWa: When was the GST system set up , PaPa? Is Singapore the only country with this policy?
PaPa: GST was introduced in Singapore on 1 st April 1994 at 3%. It was increase to 4% on 1 st January 2003, 5% on 1 st January 2004 and it is going to be increased to 7% from 1 st July 2007.
Other countries like Australia, Canada, Hong Kong and New Zealand also impose GST. However the system may differ for each country.
WaWa: How do you feel about the GST increase to 7%, Papa?
PaPa: Well, the GST increase is for the benefit of this country. To help us cope with this GST hike , the Government has come up with the GST Offset Package that will amount up to $4 billion .
For example, all Singaporean adults aged 21 years and above will be given at least $200 annually for 5 years. This is known as GST Credits and will help to offset some of the GST increase.
Other benefits include:
• Top-ups to Post-Secondary Education Accounts
• Utilities-Save, Service and Conservancy Charges and Rental Rebates
• Assistance for Low-Income Families with Young Children
….and many more.
WaWa: Hey, that's really cool! Now I understand about the GST that you and MaMa have been paying for all this while! Thanks for telling me all about GST, PaPa. I'll inform my friends about this. It's important that kids know about current affairs too , right PaPa?
PaPa: Of course, WaWa.