Staggering GST hike will not help

The proposal by Deloitte and EY to stagger any goods and services tax (GST) increases to "hopefully lessen the financial impact on the lower-income group in Singapore" sounds helpful in theory but will worsen the situation in real life (Any GST hike 'should be staggered to reduce impact'; Jan 5).

Personal anecdotes on the impact of price/tax increases in the past indicate that businesses actually look forward to such situations.

Look no further than the recent increase in water charges.

My regular coffee shop raised teh-o prices by 10 cents, from 80 cents, and Shell raised the car wash price from $8 to $9 - a hefty 12 per cent increase.

So, if we stagger the GST increase, we are, in effect, offering unscrupulous businesses a double dip from the same sauce. Not very appetising.

Danny Chow

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on January 08, 2018, with the headline Staggering GST hike will not help. Subscribe