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Thread: Governments urged to tax overseas purchases

  1. #1
    Senior Member UncleFai's Avatar
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    Default Governments urged to tax overseas purchases

    That $400 grace limit may go soon...

    http://www.channelnewsasia.com/mobil...o/2174854.html

  2. #2

    Default Re: Governments urged to tax overseas purchases

    always need more money
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    Senior Member Kit's Avatar
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    Default Re: Governments urged to tax overseas purchases

    Where you think $$$ for PG card, Medishield Life, etc come from?

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    Moderator Octarine's Avatar
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    Default Re: Governments urged to tax overseas purchases

    Quote Originally Posted by UncleFai View Post
    That $400 grace limit may go soon...
    http://www.channelnewsasia.com/mobil...o/2174854.html
    If it costs $40 to collect $28 taxes (7% for a $400 purchase), do you really think it will be implemented?
    There's a reason why the limit is at $400 and not much lower.
    EOS

  5. #5
    Senior Member UncleFai's Avatar
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    Default Re: Governments urged to tax overseas purchases

    Quote Originally Posted by Octarine View Post
    If it costs $40 to collect $28 taxes (7% for a $400 purchase), do you really think it will be implemented?
    There's a reason why the limit is at $400 and not much lower.
    All the delivery companies already set up to collect GST. Why would it cost so much?

  6. #6
    Senior Member sammy888's Avatar
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    Default Re: Governments urged to tax overseas purchases

    Quote Originally Posted by UncleFai View Post
    All the delivery companies already set up to collect GST. Why would it cost so much?
    Yup and the govt does not pay the courier companies for collecting it. This is all done in the GST returns submisson companies has to do every 6 months as a GST company.

    "Of the estimated S$4.5 billion generated in e-commerce revenue here in 2013, about 55 per cent involved cross-border transactions, according to data from Spire Research and Consulting. This represents an estimated tax revenue impact of S$100 million to S$175 million for Singapore in the year, said Spire.
    The retail sector is a major contributor to Singapore’s economy and the rise of e-commerce — overwhelmingly dominated by overseas merchants — has resulted in more money flowing out of the country as well as a loss of tax revenue. Local businesses are also placed at a competitive disadvantage."


    That kind of tax potential they lose, you think they will let that go away? Golden carrot for plucking man. heheh They might have mentioned local business are placed at a competitive disadvantage. what do you think they are going to do about that potential lose to help? They can just change the law and collect on that potential lost but how will the local companies collect back on that lost? Letting us hire cheaper labor? LOL

    Here was what in my last job I do looking after a few retail outlets selling items from $ 100 to tens of thousand of dollars item. A customer walk into my store, my staff go the distance to sell them the item, including demonstrating...etc. then when it come to the point where the customer makes a decision to buy, he/she hangs back and tell you they will think about it. Which is fine. Sales is like that. They walk out of the store, whip out their smartphone, google the product online like Amazon or where ever for the brand and product. Look at the price and cost, then decide to buy online. But we provided the service of letting them play with the product, answer all their questions, pro and cons..

    In the end, they get a cheaper price, the govt collect on the GST but my staff did not sell the product at our store and they also lost commission. So the 'middle men' (local companies) which are the owners of the company and staff got overlooked. This is not rare. I see this happen for a number of years now. And since a few years back when Amazon was even offering free shipping, this has hit a lot of the local retailer hard. In the mean time, cost of operations keep going up, landlord keep rising rental...etc. heheh....

    They want to increase the tax now? I wonder would they now say we increase this tax so help local companies as this will discourage them from shopping oversea? They better do their homework on price structure, monetary exchange and logistical infrastructures..before they come out to say that or i am calling out their BS.
    Last edited by sammy888; 7th October 2015 at 03:03 PM.
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  7. #7
    Moderator Octarine's Avatar
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    Default Re: Governments urged to tax overseas purchases

    Quote Originally Posted by UncleFai View Post
    All the delivery companies already set up to collect GST. Why would it cost so much?
    This is an example. The message is: collecting this money costs money. If the costs for collection are higher than the amount collected it becomes pointless to do it. This could be the reason for the $400 threshold.
    EOS

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