SCCC on GST Hike
Did I comment wrongly on Lee's speech? Did I criticize the hike wrongly? No… I have proof for that. This was published a day after I made my comment. From the Singapore Chinese Chamber of Commerce (The Straits Times, 16 November, 2006):
A KEY business organisation has warned that the impending rise in the goods and services tax (GST) will hurt Singapore's competitiveness and affect middle-income earners.
About the middle-income earners
'The move aimed at raising revenue to pay for increasing social needs is a commendable one. However, middle-income groups are likely to feel the brunt, as they tend to spend a larger proportion of their wages on essential consumer goods,' the chamber said.
The squeeze felt by the middle-income earners compared to the poor
These earners 'might end up feeling the squeeze most if the offset package is aimed solely at low-wage earners'.
About the corporate tax reduction
Mr Lee also said on Monday that Singapore may have to cut the corporate tax rate from its 20 per cent level to compete globally for investments.
But the chamber was cool on this proposal.
'Such a reduction would only benefit profitable companies and not the significant majority of small and medium-sized enterprises which have to contend with high business overheads and a dwindling bottom line,' it said.