An unexpected, yet predictable news from home

The title for this entry is conspicuosly oxymoronic. No doubt about that. But when it comes to innocuous sounding words like 'revision' or 'upward adjustment' of the GST, it does make sense to most Singaporean readers. It was a week ago when I learnt that the GST will be 'revised' from the current 5% to 7% from next year onwards. The implication here would be simple: by applying simple economic theories, the price of all luxury items will be significantly more expensive, while purchasing price elastic goods, the impact of the 'revised' GST could be felt when it compounds in the long term. If you ask me, the year end sales will be a good time for the ladies to grab their LVs and the guys, their PS 3 or Wii, before the 'revision' kicks off in 2007.

Moving the focus to Canada, they have a GST of 6%, and a PST of 8% (PST = Provincial Sales Tax), adding up to 14% in total to the amount taxable on any goods or services. In terms of the GST, Singapore has surpassed that of Canada. Not something to be proud of, of course. Bearing this in mind, I can only tighten my belt further when I return to Singapore should the amiable auntie selling the lor mee at my favourite hawker center say, "Lor mee, big bowl one, S$3.07." There is one nagging question that has not cease to disturb my otherwise enjoyable trip in Canada: when was the last time the 'revision' of GST was made before an election? If memory did not fail me, was it never?