Is this the right time to reintroduce the GST?

No.

It is definitely the wrong time to reintroduce the GST at the previous rate of 6%.

Why is it the wrong time?

Because in time when economic growth is dropping off the cliff, having GST at 6% is essentially having an austerity program. It will exacerbate the situation. If you are worried about government finance, remember, government finance is not the economy. Do not forget that.

Why is it an austerity?

The current SST level is approximately equivalent to 4% of GST. Possibly slightly higher than 4% as the new SST has been improved to cover new items. Having GST at 6% is effectively a tax hike from the status quo.

And a tax hike in time of economic slowdown will make the downturn worse. A tax hike is austerity.

How about GST at 4%?

No. Just do not mess with it at this time. There will be an appropriate time to do so. Do not be so noob about it.

Trackback URI | Comments RSS

Leave a Reply

*