An observation of the true impact of GST

last SG · 2007-07-02T14:16:41+00:00

Yesterday I read in Today, a guy going to a herbal shop wanting to buy a herbal drink found his usual drink increasing from $1.50 to $1.60 He proceeded to m...

soul_rage SG

oh u mean that one in the coffeeshop.

The hawker centre itself, I think all have raised to 1.50

heard from my dad that $1 portion is pretty small anyway

soul_rage SG

if you want to enter the argument, I advise you to read carefully. Someone first started all the rubbish. He has started all these rubbish all over different threads.

You do make some sense in your postings, do kindly refrain from associating yourself with Gazelle. We have the right to disagree with one another, and as I said, I won't name-call you, but don't get into arguments on a person that has shown to this day he is a self-serving person.

I don't understand your posting above.
1) what "the lor 8 hawkers can do it"? do what?
2) vote the govt that raises GST ultimate solution? Don't understand what you mean

As I said, I can accept different opinions. Pls read carefully what that someone you are protecting is doing. He is the one that cannot accept other people's opinions

sgdiehard SG

The ones inside the hawker center has always been 1.50 never increase. Of course $1 with egg is a smaller portion, but but definitely not 50% less than the 1.50 one, and for breakfast it is enough. Pay $1 for carrot cake, $0.6 for a big glass of soyabean milk no ice, $0.4 for dao huey. Total $2.00 for a healthy breakfast.

Anybody any suggestions for any cheap place to eat, any good hawkers to suport?

soul_rage SG

if you want, you can try lor 1 hawker centre level 2 qing shan carrot cake. It has numerous awards, and the carrot cake is crispy and fragrant (you can actually see carrots in the carrot cake).

It costs about $2. Not cheap, but at least the price was there since day 1.

mistyblue SG

the talk that Singapore wants to be more competitive. I don't see how increasing GST will help.

Actions does not tally with the words.

sgdiehard SG

You started the thread, he asked 3 questions, you said that was only your observation..then war broke out....spilled over from other threads. will not get into the argument between you two, not worth taking either sides, and nobody needs any protection here. I have yet to see any posts here that truely reflect the situation. Observe with open mind, analyse with brain, then respond and act with a heart.

1. If the Toa Payoh Lorong 8 hawkers can do without raising prices, why the others cannot?

1. Sorry, I meant vote the government that raise GST out of office.

sgdiehard SG

This is what I mean, if these people can maintain their prices, why should some other hawkers increased? Will try this one some day.

soul_rage SG

Hi Matleep

I am unsure if your above example works.

Basically, the end product's GST is dependent on the price of the final good that is sold. The price of the final good is never impacted by the GSTs incurred by the companies in the supply chains, but more so by profiteering on the companies' parts.

So if you go to your above example, it is not really correct to say that you only incur 3.5%. The basic idea of business is to buy for 1 and sell for 2. So technically, if a business cannot claim GST, they would write that into their costs.

So assuming market conditions allow it, he would sell perhaps at $214 (and not $207), and then impose a 7% on $214.

If he is a GST registered company, then he could claim $7 GST from the $107 cost, and then instead of calculating it into his costs, remove that, and sell his goods at $200 (Excl GST) (buy for 1 sell for 2), which would then be cheaper for the customers.

Of coz you have companies that claim $7, and then still include that $7 into his base cost computation. That's why I find it fishy that Case could investigate the cases. Its really difficult to decipher between price increases due to GST profiteering and true GST impact, becoz there are many ways to hide the cost computation of a product

dragg SG

a company can charge GST only if the total revenue is more than 1 million.

they have to apply for a certificate to prove their eligibility.

soul_rage SG

Anyway, I agree you are right that I should just ignore Gazelle. He's too noisy and tends to screw up discussions.

There is another carrot cake at a coffeeshop opposite the road where the Braddell MRT is located, that is also nice, beside the 24 hours MacDonalds. Try both and let me know which one you think its better (I tend to think this coffeeshop carrot cake is nicer than the other, but is more expensive)

Anyway, the problem is, I find hawkers sometimes work on peer pressure. You have prices raised by 50 cents, then you have customers that don't respond by staying away. And then these hawkers survive, and those that maintain their prices would be tempted to raise their prices as well.

Also I refer to my other points. I observed a few retailers also secretly round their prices to the nearest 5 cents (usually up), which I find its profiteering. And you have customers that don't stay away coz they think a few cents is not impt.

soul_rage SG

I thought it was the other way ard?

When a company hits turnover of > 1 million, it is mandatory for them to be GST-registered

Rock^Star SG

A business owner's mentality would be: "I am not running a charity here. I aim for profit. Why should I bear the brunt of the GST increase for other people?" Regardless of profit margin. The key is maintaining status quo.

It is unfair to label them unscrupulous just because there are businesses that have chosen not to raise prices. If these businesses choose to bear the brunt of GST increase at their own expense, so be it.

Perhaps it would be wise to reflect on who pulled the trigger in the first place.

soul_rage SG

actually I would like to add a point further
I think costs differs for locations.

There are hawker centres where the cost of rental has doubled since their renovations.
And also it all depends as well on the costs of the raw materials that each hawker is buying.

Thus, yes I agree not all who raise prices are unscrupulous. But I don't have a good impression of those who raised prices by 50 cents close to but BEFORE the 01 Jul

Rock^Star SG

Of course these hawkers are unscrupulous. However, scruples aside, such circumstances should have been factored in before the decision to implement GST was affirmed.

xxthunder SG

Originally posted by sgdiehard:

Come to Toa Payoh Ave 8 market, under the Potong Pasir Town Council, soya milk remains at $0.6 for a big glass, dao huey $0.4 a big bowl, black carrots cake with eggs has always been $1.00!!!! come to Potong Pasir, move to Potong Pasir and support the oppositions!

It is wrong to raise GST, it is even wrong to capitalise on an evil thing to do greater evil. Boutique owners make more than 100% profits, to clear off seasons fashion, 50% discount means nothing, what is 2%??? the hawkers don't pay tax, many take every little opportunity to raise prices, they vote for PAP because PAP always give them these opportunity.

Boycott the unscrupulous businessmen, don't just scold the government, come to Potong Pasir, though Chiam is not my camp.

actually if we really want to do something about this "wonderful period"
I think the best we can do is to provide places that offer the best deal ,be it daily usage stuff like toothpaste,shampoo,makan ......etc.

Sooner or later,those profiteer will go with the flow of offering better price.The best part is that soon time fly and election is here again.This time see things with a wider view and cast the holy vote for the future that you want and care about.

laoda99 SG

Originally posted by Gazelle:
[b]WE NEED PEOPLE'S ACTION PARTY, NOT PEOPLE'S TALKING PARTY [/b]

u got eat KFC or not? Why dun u so civic minded report KFC to the authorities saying why must increase $0.20 for each meal? Why must wait for others to report? Aren't u also tok cock sing song here also by not reporting?

And Yakun Kaya Bread also....$3.70 to $3.90 even before 1st July.......

pearlie27 SG

GST is not up by 2% but by 40%! From 5% to 7% is actually 2% more on 5% which is equal to 40% increase.

Sometimes it is not feasible for vendors to increase their prices as the same % increase in GST. Moreover there is also the snowball effect as goods pass from one supplier to another. But of course there are others who capitalised on the hike.

Ok i'll boycot Delifrance since they don't follow the laws of maths. i shall also exercise my consumer's rights by boycotting those who up their prices excessively and don't provide value for money.

walesa SG

dragg is right. In fact, I'd pointed this out much earlier on your thread in a seperate post.

sgdiehard SG

wua lao, you don't say I also dob't know. Will boycott KFC, at least for a while. Will go toast box, kopitiam to check if they increase prices, otherwise will just support the neighborhood coffee shops, but no aircon when taking bf, a bit hot leh..

soul_rage SG

oh hmm... I thought it was more motivational for the govt to enforce those who reach that quota to be GST-registered, coz it means that they have to collect taxes.

So if my company hits turnover 10m, I can still say I don't want to get GST-registered?

« Previous Page Next Page »