How will GST raise effect prices of photography equipments?
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For example, you are quoted $1000.00 for a lens, now you pay $1050.00 nett. After 1 July, you pay $1070.00 nett. :cry:
Is it that simple? I am more afraid of the accumulative effects of GST raise; then the raise of prices for photography equipments would not be merely 2%.
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 :bsmilie:
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 :bsmilie:
Is it that simple? I am more afraid of the accumulative effects of GST raise; then the raise of prices for photography equipments would not be merely 2%.
It is a fact that retailers merely collect the tax for the government, in some sense. Any registered company has the ability to claim back in full the GST they dole out for operating costs - there's a link in one of the old Kopitiam discussions somewhere that I'm too lazy to dig out.
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.
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.
Prices will fall!!!;p
If you disagree with me, you probably know it better than me...
BC
this is what you are told by the many people who think this is going to be....
but, in reality, this will happen......
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.
in short, it will have a cascade effects on price raise on everything.
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.. :think:
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 reality:
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? :angel:
Also by the retailers who will say:
In reality:
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? :angel:
Not denying that there will be a "cascade effect". But you have to acknowledge that by right, they have no such right to claim a "cascade effect" - non existent. Just greed driving the prices up that much, not the GST. In that sense you cannot point that finger at the GST.
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.
Bro, I'll have to disagree with you on this one. There are really 2 issues here:
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...
Don't see how you disagree.. Looks like an agreement, hehe. =) Basically what I was trying to say. So, yes, announcement of GST will drive up prices, but not in the sense of a cascade effect due to the GST snowballing, as you mention in #1, that was the main point I was trying to make in deference to catchlight's earlier points.
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...
then grey set market and HK shop will more welcome SG people lah...
No cascade effect? So the shop pay for higher paper, administration cost? They can't claim back, so they have to pass to consumer to maintain the same margin. The shop owner may feel the pinch of general price increase, so may increase the rental to maintain the same/better income, so the shop got to pay more for rental, and pass it to consumer again. All these small increase do add up and being passed to consumer. The garment sure wish don't have cascade effect and no uproar from consumer.
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