Wrong..... Not just to fund the poor. the middle income also pay less taxes. if not the base taxable income will have to be raised. and GST collected are also use to spen on country infra.
http://www.gov.sg/government/web/con...ssitiesfromGST
e Goods and Services Tax (GST) was introduced in 1994 to diversify our tax base and reduce our reliance on direct taxes such as corporate and personal income taxes. Everyone in Singapore, including Singapore Permanent Residents (SPR) and foreigners, pays GST on the goods and services they buy.
When GST was introduced, this enabled the Government to lower personal income taxes from the top range of 33% progressively to 20% today. Those paying income tax today also must earn above $20,000 per annum. With these changes, many do not pay personal income tax.
The money collected from GST forms part of the Government revenue which goes to fund expenditure for Singapore, such as the building of infrastructure like schools, roads, hospitals, MRT lines and other public facilities, and providing subsidies like health, housing and education subsidies.
The money collected from GST also enables the Government to use a significant part of it to help lower-income Singaporeans by funding social assistance schemes. As GST is administered at a flat rate, the Government is aware that the GST adds to the living costs of the lower-income families. To ensure that GST does not hurt the poor, GST Vouchers are given to lower-income families to offset what they pay for in GST.
With the GST Voucher, the GST paid by elderly households in 1- to 3-room HDB flats will be fully offset. For lower-income families who do not live with their elderly family members, half of their total GST expenses will be offset.