23 February, 2018[Wow! A psychic! I wish I had the power to foresee the future, like her. I wanna know what numbers will be in the Hong Bao draw.]
I foresee that the increase in our Goods and Sevices Tax (GST) in future will push up the cost of living further.
We can cut back on more luxurious travels, expensive cars, premium houses, etc, but we still have to eat, so shouldn’t the most basic food items be largely exempted from GST?
Such goods are relatively inelastic in price, and if they cost more, demand for them will still not fall.[OMG! This psychic is predicting that once GST increase, Singaporeans will take fewer holidays, buy fewer expensive cars, and fewer premium houses! What's the GST on houses? Oh wait! There's no GST on property purchase. That's "covered" by Buyer's Stamp duties. WHICH HAS ALREADY INCREASED (for million dollar property)!]
A GST hike will not benefit producers and consumers, but likely compound the already stressful cost of living domestically.
Even leisure or play is going to cost more, as seen by the tax on digital services which include entertainment content. So, too, will a visit to theme parks or gym classes or the buying of sports gear. How are we encouraged to maintain a healthy lifestyle — which could help to reduce stress — in a pressure-cooker society?