The new GST will have no affect they say. HA! The Singapore government should take a look at the newest Certificate of entitlement (COE) prices.
COE prices fell with the biggest drop in the big car category. It was an across the board fall with Cat B cars (cars more than 1,600cc) falling the most, down by $1,492 to $17,399. The only expection to the fall was Cat D, the motorcycle category.
Car dealers said that the GST hike is the main reason for the lack of interest in buying cars. Cars are the least of the Singapore government problems. The rise in GST was poorly explained to the people and just because the economy is doing well doesn't mean that the people will just accept a tax increase, especially when there hasn't been a salary increase in some time.
I have said on this blog that I will have to lower my purchases when the GST increase come into play. Well, it seems that I'm not the only one with that idea.