Shadow Budget - Questionable Intent - Taxation

Page 12 point C(6)

"Taxation will be orientated away from consumption to income, which is the fairest way of levying taxes. A graduated GST to take account of essential goods versus luxury goods will be introduced and a tax levied on property sale transactions above S$3 million, in addition to current stamp duty liability. In line with this, all government fees and licenses will be frozen at their current amounts. The habit of profiteering from basic services and from enterprise must be removed from all public sectors of the economy and society."

Page 12 point C(7)

"This Shadow Budget is based on several basic, people-oriented standards designed to enhance the nation’s resources and its output. These standards encompass the ideas and values that have emerged from key thinkers and economists in the recent period:

• Minimal expenditure increase;

• Redirecting of priorities;

• Efficiency savings;

• Removal of subsidies in favour of fair income;

• Reorienting of taxation away from consumption, and

• Divestment of government control in the economy.

They will ensure a stronger economy, a more cohesive community, and a happier, healthier and better educated population."

My comments
SDP is proposing to levy taxes on income and to orientate it away from consumption. I think this proposal is regressive in nature and totally missing the fundamentals.