7% GST !!!

Received an email from a friend which make sense..

For those residing in Singapore...(this was sent to me by an ex-auditor)
Example 1
In 2006, if after rebates etc and your net taxable income is $60,000,
the income tax you need to pay is $2,700 (8.75%).
If you spend $800 amonth on needed goods and services,
the GST paid for 5% will be $480Total=$3,180 in Tax paid.

In 2007, if after rebates etc and your net taxable income is $60,000,
the income tax you need to pay is $2,600 (8.50%).
If you spend $800 amonth on needed goods and services,
the GST paid for 7% will be $672Total=$3,272 in Tax paid.

From $3,180 to $3,272, the effective increase is 2.89%.

Example 2

In 2006, if after rebates etc and your net taxable income is $400,000,
the income tax you need to pay is $61,650 (21%).
If you spend $4,000 amonth on needed goods and services,
the GST paid for 5% will be $2,400Total=$64,050 in Tax paid.

In 2007, if after rebates etc and your net taxable income is $400,000,
the income tax you need to pay is $58,700 (20%).
If you spend $4,000 amonth on needed goods and services,
the GST paid for 7% will be $3,360Total=$62,060 in Tax paid.

From $64,050 to $62,060, the effective decrease is -3.11%.

Example 3

In 2006, if after rebates etc and your net taxable income is $25,000,
the income tax you need to pay is $187.50 (3.75%).
If you spend $800 amonth on needed goods and services,
the GST paid for 5% will be $480Total=$667.50 in Tax paid.

In 2007, if after rebates etc and your net taxable income is $25,000,
the income tax you need to pay is$175 (3.5%).
If you spend $800 a month on needed goods and services,
theGST paid for 7% will be $672Total=$847 in Tax paid.

From $667.50 to $847, the effective increase is 26.89%.


The fact is:The poorer you are the more the GST is going to make you poorer !!!!