GST everywhere you travel
There is a trend that GST (Good and Services Tax) or Value-Added Tax will be implemented throughout Asia Pacific. Tomorrow (1st July), Singapore businesses will switch from 5% to 7% GST, a 2% tax hike. Comparing Asia Pacific countries to European Union (EU), you will find that the majority of governments in the Asia Pacific region that impose GST or VAT do so at comparatively low rates between 5 to 12.5% (with the exception of China), and on average at a rate far below the norm in the EU where rates range from 15 to 25%. VAT and GST are the two of the fastest growing taxes globally with no less than 140 countries operating a VAT/GST system, reflecting a global trend by governments to focus on the certainty of revenues from indirect taxes. When Singapore first introduced GST in 1994, the tax was responsible for approximately 11% of government tax revenue, in the last financial year, that proportion had nearly double to around 20%. This trend is set to increase with the impending GST hik...