I fully agree with Mr Wilson Loo Kok Wee on his objection to lowering the goods and services tax (GST) registration threshold ("Lower GST registration threshold will hurt small businesses"; Feb 13).
The $1 million threshold was first set in 1994 when GST was first introduced. After more than 20 years, this threshold remains the same without rising in tandem with the inflation rate.
Based on a conservative estimation of a 2 per cent inflation rate compounding annually, this threshold would be $1.5 million in today's dollars.
As pointed out in Mr Loo's letter, many non-IT-savvy small businesses, mostly run by elderly people, are being included in this old threshold and, hence, are required by law to be a GST-registered business.
I, therefore, urge the Government not to lower the threshold. It should, instead, raise it to at least $1.5 million to reflect the general price level of consumables.
Lee Chin Chee