GST on online purchases the right move

The news that goods and services tax (GST) could soon be levied on e-commerce purchases is bound to be unpopular (Experts expect GST to be levied on online purchases; Nov 23).

But this tax is needed and it is the right move, especially as the online overseas transaction volume is getting bigger and expanding rapidly.

This online tax is needed to supplement government revenue in the light of the projected expenditure in areas such as infrastructure and healthcare. The money must come from somewhere.

Such an online tax will also be fairer on our local retailers.

The Government has implemented the GST well, with vouchers given to the low-income group to cushion its impact, and redistributed the wealth fairly.

Personal income tax in Singapore is low compared with those in many developed nations.

Singapore has managed its tax system well, taxing the rich more to distribute the wealth, but at the same time remaining attractive to businesses and the wealthy with its pro-business policies.

Sim Lim Onn