Tuesday, August 18, 2009

what goes up must come down? no?

Second Finance Minister Lim Hwee Hua said the goods and services tax (GST) will not be reduced. During the second reading of the GST Amendment Bill on Tuesday, Mrs Lim was asked by West Coast GRC MP Ho Geok Choo if the GST can be cut temporarily if economic conditions worsen. Mrs Lim said a temporary cut is not desirable as it will result in more administrative costs due to the higher compliance. Also, she pointed out that a GST is not effective in stimulating demand in the local economy as the recent experience of Britain has shown.

source: CNA

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