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Tax Project

In: Business and Management

Submitted By wongkailing
Words 2006
Pages 9
Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said on Friday that the purpose of the Goods and Services Tax (GST) was to ensure that "the tax system is fair".
Speaking at a Channel NewsAsia forum on Friday evening with panelists from different segments, the minister explained that "most of the taxes are paid by those who are better off and the benefits are received by those less well off."
Referring to the new permanent GST voucher introduced in this year's Budget, Tharman said it was meant to "help them (lower income families) to bear daily and medical cost, quite apart from topping up their income through workfare and improving the subsidies".
The voucher will fully offset the 7 per cent GST that the lower half of retiree households pay on their expenses. The GST voucher will come in the form of cash, U-Save and Medisave top-ups.
In the last five years, the voucher had been done on a temporary basis "so people can see it with their own eyes and they get to understand the whole nature of the tax system that this is a clear fair tax system — I'm getting something back if I'm poor," said Tharman.
"If I'm rich, you don't get anything back because your job is to pay some taxes for the betterment of society, that's the logic behind it."
Panelists at the forum also shared their concerns on whether our society cared enough for the elderly, among other issues discussed.
"I wanted to make sure that people don't get away thinking the only reason that we want the elderly to be well is so that they can work," said Ren Ci Hospital's chief executive Loh Shu Ching, before adding, "We shouldn't define people by how productive they are."
"When we talk about a sense of purpose for the elderly, it could just be ageing actively, doing other things apart from working, contributing to the society in other ways rather than making money… you can age gracefully

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