Do you think Govt will tax gains from CPF & SRS to boost revenue?

MikeDirnt78

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Let's not be greedy lah.

Is a 0.1% increase in ROI achievable???

On an set base 0f 750B, that's an extra 7.5B - enough, I think, to negate a need to increae GST by 2-3% lol...

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Yes but the returns is not something that I can ask for. You can only aim for.

Unless the fund manager is allocating 100% into bonds. Your returns are locked upon purchase.
 

ocs_woodlands

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My apologies. Cold weather affected my brain.

0.5% of 750B is 3.75B & 0.1% of 750B is 0.75B respectively.

So looks like they just simply have to aim for 0.5% higher from now on.. Not that difficult if they have just been on ANY DJ ETF fund....

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pcmdan

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Bo Liao..the people who write this article never really think thru.

1. If u stop SRS..or tax SRS..effectively removing the scheme...

2. For people who saves..they are effectively not going to require social aid in future (i.e. if they don't anyhow spend...thinking these people who are more financial savvy they would likely know how to safeguard it)

Super bo Liao recommendation.

Honestly if wan to tax the rich...cap a limit on how much saving they can have by putting in SRS or CPF.

My humble proposal is

Someone can only save max 15% or lower for every $1k saved. This could encourage the lower income to save

Next, remove the ability for foreigner to enjoy the SRS. Foreigners are not and will not live in Singapore for their retirement. Why should they enjoy any tax savings.
 
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crimsontactics

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Bo Liao..the people who write this article never really think thru.

1. If u stop SRS..or tax SRS..effectively removing the scheme...

2. For people who saves..they are effectively not going to require social aid in future (i.e. if they don't anyhow spend...thinking these people who are more financial savvy they would likely know how to safeguard it)

Super bo Liao recommendation.

Honestly if wan to tax the rich...cap a limit on how much saving they can have by putting in SRS or CPF.

My humble proposal is

Someone can only save max 15% or lower for every $1k saved. This could encourage the lower income to save

Next, remove the ability for foreigner to enjoy the SRS. Foreigners are not and will not live in Singapore for their retirement. Why should they enjoy any tax savings.
Why not just take away SRS totally then?

People who participate in SRS are easily upper middle class folks who benefit from major tax relief. We should not be subsidising their retirement.

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pcmdan

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Why not just take away SRS totally then?

People who participate in SRS are easily upper middle class folks who benefit from major tax relief. We should not be subsidising their retirement.

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True...but that would also encourage less savings where ultimately it could end up burdening the govt one day. Middle class people usually are not rich folks but live high Life. By not giving them an avenue to save..they would spend everything...the tax burden will fall on the younger generation
 

crimsontactics

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True...but that would also encourage less savings where ultimately it could end up burdening the govt one day. Middle class people usually are not rich folks but live high Life. By not giving them an avenue to save..they would spend everything...the tax burden will fall on the younger generation
But the problem is the middle class and below usually don't have the spare cash to participate in SRS, or don't have the tax liability needed to participate.

So might as well just shut the whole thing down. Can save hundreds of millions per annum according to the article.

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pcmdan

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But the problem is the middle class and below usually don't have the spare cash to participate in SRS, or don't have the tax liability needed to participate.

So might as well just shut the whole thing down. Can save hundreds of millions per annum according to the article.

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If I have to think of the lesser of the 2 evil...I would agree..

But I know many people who earn above 6k but below 10k put money in there. So I don't believe middle class don't participate.
 

crimsontactics

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If I have to think of the lesser of the 2 evil...I would agree..

But I know many people who earn above 6k but below 10k put money in there. So I don't believe middle class don't participate.
I think above 6k can be considered upper middle class considering that the median salary is only around 3.5k

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BBCWatcher

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The problem with GST is that there is insufficient information on who is paying the GST. While it is easy to assume that locals are footing the bill, I get the vibes that tourism is the main engine behind GST....
Why would you get those “vibes”?

In order for foreign tourists to pay the lion’s share of GST, they must be responsible for the lion’s share of consumer spending in Singapore. In fact they’re responsible for approximately 10%.

Then you have to adjust for the GST refund counters at Changi Airport. Foreign tourists (only) get to use those counters, so some of the GST they pay is refunded when they depart.

Yes, locals are footing GST, over 90% of it. (And the government well knows this.) That figure includes foreign temporary residents of Singapore, including low income FDWs (as an example).
 

pcmdan

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Why would you get those “vibes”?

In order for foreign tourists to pay the lion’s share of GST, they must be responsible for the lion’s share of consumer spending in Singapore. In fact they’re responsible for approximately 10%.

Then you have to adjust for the GST refund counters at Changi Airport. Foreign tourists (only) get to use those counters, so some of the GST they pay is refunded when they depart.

Yes, locals are footing GST, over 90% of it. (And the government well knows this.) That figure includes foreign temporary residents of Singapore, including low income FDWs (as an example).

Totally agree.. I don't believe the lion share is coming from tourists at all.

Majority should come from people who resides here
 

pcmdan

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I think above 6k can be considered upper middle class considering that the median salary is only around 3.5k

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Hmm..but people with 6k salary only get tax around 7% (on income) which doesn't save that much by pumping into SRS and CPF.
 

limpoop

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Do you know how many millions are lost in tax revenue due to SRS? Why should we waste money to help build the retirement fund of people who are literally in the upper middle class and above?

How does PRs benefit from the removal of CPF tax relief? Removing this relief will increase the tax paid by these PRs instead.

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What about baby bonus & PTR & WMCR? Rich people also can get.

What about below tax deductions only benefit the middle-income & the rich?

CEVS
Property tax deductions
CPF topping up deductions
Foreign Maid Levy Relief
Life insurance premium deductions
 

limpoop

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But the problem is the middle class and below usually don't have the spare cash to participate in SRS, or don't have the tax liability needed to participate.

So might as well just shut the whole thing down. Can save hundreds of millions per annum according to the article.

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That is what you think?

We need data from Govt on SRS to see the stats.
 

pcmdan

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What about baby bonus & PTR & WMCR? Rich people also can get.

What about below tax deductions only benefit the middle-income & the rich?

CEVS
Property tax deductions
CPF topping up deductions
Foreign Maid Levy Relief
Life insurance premium deductions

Life insurance got no tax savings for rich and middle class who got above 5k CpF contribution
 

Tiger9119

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This one I'm not sure lol. I also don't like them to be so secretive about it. Very hard to make informed opinions without information.

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Remember 1997 Asian Financial Crisis? Remember George Soros? Even though HKD are pegged to USD, Hong Kong had to increase the interest rate for HKD to more than 10%. Maybe one of the reasons why George Soros didn’t attack SGD is that he did not know how much Singapore have in reserves.
 

pcmdan

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Sorry to burst the bubble...but likely govt gonna increase gst..

They wanted to increase long time ago..we are just lucky to delay it till now due to GFC.

I doubt our current money grabbing govt is gonna miss a chance like that again
 

andyhtc

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The government needs a lot of money to fund mega projects, so GST has to go up in 1-2 years' time. The projected good economy in 2018 makes it very favourable to implement.
 
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