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