Hi, any idea about the effect of GST raise on photography equipments?
For example, you are quoted $1000.00 for a lens, now you pay $1050.00 nett. After 1 July, you pay $1070.00 nett.
should be quite transparent since the shops usually quote prices w/o gst... if they are gst registered, increase in gst does not affect them since they can claim back gst from gov...
more likely small retailers like attempting to increase price from $1.05 to $1.10 even though gst only increase 2%...
just my 2 cents
Plus, unless people manufacture lens in Singapore and then sell and dish out the GST in your perceived situation, most lenses are imported. No difference unless prices rise over there. GST will be charged only ONCE in any case. =)
That 2% increase in GST will have a larger cumulative knock-on effect on the cost of doing business. So if the item was originally $1050 with 5% GST, don't hope that it will cost $1070. It will be more. Everything associated with the business goes up - rental, utilities, admin cost, transport, NETS, storage, shipping, etc. They all add up, so the consumer has to pay more.
Come July, the retailers will change the price tags for all items that they sell. That's what I'd do if I was running a retail outlet. Whatever older prices or quotes won't be valid.
Last edited by creampuff; 14th June 2007 at 12:45 AM.
I think comfirm will affect. So buy before GST increase.
This should be post at kopitiam.
imho, definitely price will go up.. even with the GSS.. i think the hike will be > 2% increment on the tags. sigh. wonder if the camera market will just craash like what can happen to stocks..
This is what you are told by the many people who think this is going to be...
Also by the retailers who will say:in short, it will have a cascade effects on price raise on everything.
Wa lau GST raise la that's why your lens price rise so much.
Please see IRAS website
No cascade effect, because can claim back. But do you think Mr Photographic Equipment Shop who needs that new Mercedes is going to tell you that?
Amusing how one party always gets the flak in everything. Almost disgusting. If it's really their fault, fine. But well, if it's due to misinformation, then it's definitely not ok.
Last edited by night86mare; 14th June 2007 at 10:25 AM.
Prices will increased. Plus now net gona play a part in it.
1) The input tax really is a non-issue because for those who are GST registered, they are in fact collecting the tax portion due for the provision of goods or services rendered in the course of their business to the IRAS whenever they make a GST return.
2) The second issue relates to the spiral of inflation that comes about whenever the GST is raised. The authorities are smart enough to know that this a very big lever in their economic bag of tricks. The tax is an all inclusive, across the board tax that will naturally affect the cost of doing business. Why is it that when the GST was first introduced, the actual tax received was much, much higher than what was originally projected? Very simply, prices went up and with higher prices, the Govt. collects more by way of GST.
In the chronology of events, when the additional GST was announced, the banks upped the NETS rates presumably to cover the pending increase in the inter-bank clearing charges. Singapore Post increased postage rates, Starhub increase rates, ERP increase, transport fares increase, etc. See the pattern...
if by 5% at 1050, then after 7%, it will be more likely to be 1090 something...(rental, pubfee...)
then grey set market and HK shop will more welcome SG people lah...
Sony Alpha 700 hobbyist
Any one is economist or accountant? Can help to explain. 多謝多謝!