Hong Kong now jialat because their main way of making money, which is from land sales, is drying up.
During his Budget speech on Feb 26, Hong Kong’s Financial Secretary Paul Chan announced that 10,000 civil service jobs would be potong by 2027.
Last time, their government can sell land and make big money from developers. But now, their property market crash, land sales revenue drop from 20% of total income to only 5%. Then how?! So now, their Government decide they they must cut 10,000 civil service jobs, freeze salaries, and maybe STILL not enough to cover the big big hole.
Wa piangz, if Lao Niang works as civil servant in Hong Kong I confirm scold the Government, “DLLM, HKC!”
I mean Deficit Lai Liao Man, Hong Kong Cham!
How can like that you not enough money then want to 开刀(cut) on the civil servants who are the workers working for you ah?
BUT hor, if Hong Kong had something like Singapore’s Goods and Services Tax (GST), maybe they won’t kena this kind of financial roller coaster liao.
Singapore’s GST Works Better Than Hong Kong Land Sales. And here’s why:
More Stable Income – No Need to Pray to God to Bo-Pi that the Property Market Do Well
Hong Kong’s revenue up up and down down because it depends on land sales.
But in Singapore, GST confirm every year will have revenue one because everyone will be spending money no matter the economy is good or bad.
Rich people spend more = pay more GST
Tourists also pay GST when they spend here
Poorer ones and those in need will take back the money through social transfer like your Permanent GST Vouchers, rebates, and subsidies for lower-income families.
So in a way, everyone contributes, but those who need help still get support.
Everyone is Paying GST, Not Just Property Buyers
In case you don’t know, the Hong Kong system mostly tax land sales + profits from companies. If the property market crashes like Lao Sai, then the government got no income. Like now lor, they don’t have other backup plans except to cut jobs and freeze pay. Maybe next is to cut even more spendings, or borrow money from Ah Long liao.
But in Singapore, GST spreads out the burden across all consumers. Even tourists contribute when they spend money here! No need to depend on the property market to survive.
Should Hong Kong Introduce GST?
If Hong Kong want steady money flow, they need something like GST.
Instead of hentaming the civil servants and waiting for the property market to recover, GST guarantees that the government always got revenue to run the country.
Of course, if suddenly introduce GST, confirm people will kpkb. But long-term wise, better than, cutting jobs and freezing pay, right?
