This is another example of the ignorant indoctrinated by years of PAP’s propaganda – “Singapore’s 7% GST is the LOWEST in the world, look at Europe and the U.K., their VAT is 20%……Singapore’s 13% BETTER!!!”
Really? Do you even know the truth?
Yes, in the Western countries like U.K. the headline VAT (value-added-tax aka GST in Singapore) is 20%. But this is applicable only to your luxury purchases– your LVs, APs and Rolexes.
VAT is exempt for basic essential foodstuff like your milk, eggs, sugar, flour, bread, rice, baby milk powder etc.
So suffice to say when you go grocery shopping in the UK, you don’t need to pay any VAT on the foodstuff you bought!
Just check your last NTUC Fairprice grocery receipt; how much GST have you paid for your daily essential foodstuff?
Of course, if I decided to go for a nice brunch at one of Gordon Ramsay’s restaurant, I would need to pay the VAT for my poached eggs.
So whilst many have the perception that UK and Europe expensive places to live in with high taxation, people there do have a choice – to buy GST-free groceries or eat at a GST-free restaurant.
Do Singaporeans have the option of not paying GST for their foodstuff???
Singapore today has REGRESSED after 13 years under LHL’s myopic leadership, if you have been observing carefully and doing meaningful global cross-borders comparison!
A lot of Singaporeans who have not lived overseas for a meaningful period as a local can never understand the real issues that Singapore is facing today.
Especially those with lesser critical thinking and constantly fed by half-truths unknowingly, of which the VAT is a very good example.
In Singapore the 7% GST is applied across everything.
In western countries like Australia, UK etc. a LOT of things are GST/VAT-exempt.
These include, if you do not already know – all education, insurance, medical and social services.
So you do not need to pay any GST on the story books you buy from Popular or Kinokuniya.
No GST on all your educational courses, tuition classes or university fees.
No GST on medicines when you are sick and have to visit the doctor or have an undergo a surgical procedure.
When you buy insurance for yourself, your family or even your car, there’s no need to pay any GST too.
This goes for all medical and social welfare services from birth to burial – NO GST/VAT.
In Singapore, you have to pay a goods and services tax on even your own coffin and funeral service!!!