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Wd40
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Singapore Budget

Postby Wd40 » Sat, 22 Feb 2014 12:48 am

From what I have read there isnt much change in Income Tax rates. There is only some increase in rebate for people supporting parents and handicapped spouse, so thats not going to affect majority of foreigners.

The biggest change from this budget is that alcohol and cigarettes are going to get more expensive from today :(

http://www.todayonline.com/singapore/bu ... s-go-today

Tomorrow 1st thing I am going to go to Fairprice and see if prices are same and if yes, I am going to stock up on my beer.

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Postby PNGMK » Sat, 22 Feb 2014 10:30 am

There have been some changes to CPF that may help older SC/SPR.

http://mycpf.cpf.gov.sg/Members/Gen-Inf ... 14_CPF.htm

OF course they NEVER increase contributions towards OA....

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Postby Sergei82 » Sat, 22 Feb 2014 11:47 am

Liquor 25% up.
Tobacco 10% up.

Waiting for the day when we all need to pay COE S$ 80000 only to get entitled to drink alcohol.

With such a pressure on clubs and pubs no wonder Singaporeans have droopiest faces in the world!

P.S.: Can't believe how this country changed in last 4 years and a half since I came here. 4 years back real estate prices were 1.5-2 times lower, COE was S$10000 for cars.

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Postby sundaymorningstaple » Sat, 22 Feb 2014 12:32 pm

For the record, in 1994 (Aug & Sept) the COE was 104K in 1994 dollars. What would that be today, around 137K for an open Cat COE? Oh, <1600cc was around 102K at the same time. You all don't know high COE yet. :wink:

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Postby Sergei82 » Sat, 22 Feb 2014 1:04 pm

I thought, COE can only go up. So when it goes down, does it mean that government decided to increase vehicle population??!??!??!? :???:

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Postby AngMoG » Sat, 22 Feb 2014 1:57 pm

That is a sudden increas in alcohol prices - btw, it's the tax that increases 25%, not necessarily the end price. On the other hand, I am guessing that >50% of the price is tax anyway, so the increase will still be significant. I'd say around $1-2 per beer at least in bars.

Now I am kind of glad I left Singapore recently. I can now enjoy buying <$1 beers from the supermarket, and $10 bottles of wine that are actually quite drinkable. :twisted:

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Postby x9200 » Sat, 22 Feb 2014 3:35 pm

Sergei82 wrote:I thought, COE can only go up. So when it goes down, does it mean that government decided to increase vehicle population??!??!??!? :???:

The bottom low you mentioned was at the time of the most recent crisis so I guess it was to help a bit the economy.

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Postby Wd40 » Sat, 22 Feb 2014 3:46 pm

COE prices are determined by bidding in auction, similar to share prices, sentiment driven, demand and supply. In 2008 end - 2009 beginning, people were losing jobs, their house values were plummeting 30%. In such an environment who would want to bid for expensive COE, people just bid at the lowest possible levels and nobody tried to outdo each other to buy a car.

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Postby x9200 » Sat, 22 Feb 2014 4:32 pm

We are both wrong. Low COE was already around 2006.

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Postby Sergei82 » Sat, 22 Feb 2014 5:02 pm

This is what I do not understand: COE is a form of a tax (isn't it), it's not going to somebody's pocket. How can you bid a tax? Can you teach me some basics?

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Postby Mi Amigo » Sat, 22 Feb 2014 6:16 pm

The only income tax change that affects me is the removal of the 30% rebate (capped at $1,500). It's missing from the YA 2014 calculator, so they obviously decided not to carry it over from last year:

http://www.iras.gov.sg/irasHome/uploadedFiles/Quick_Links/Copy%20of%20Tax_Cal_Final_170211_IRAS.xls
Be careful what you wish for

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Postby sundaymorningstaple » Sat, 22 Feb 2014 6:56 pm

Sergei82 wrote:This is what I do not understand: COE is a form of a tax (isn't it), it's not going to pocket. How can you bid a tax? Can you teach me some basics?


The COE is NOT a tax. The COE is a FEE you pay for the Certificate which allows you to purchase a car. In theory and in FACT it could be as low as $1 (it actually happened once for motorcycles if I'm not mistaken. The month/year eludes me at the moment though. It is an auction on the number of bids and the allowable number of vehicles for the month. The number of vehicles are determined by how many vehicles were due to be scrapped and the allowable increase in number of vehicles on the road (I believe it's .5% increase max per month - but don't quote me). So, at the end of the bidding, the COE price for that month is the lowest successful bidder. If there are not more bidders than vehicles for a given month, and you bid $1 then you become the lowest successful bidder so the COE for the month for that class of vehicle is $1.

Rare that it happens because Singaporeans are so Kiasu they bid to be the TOP bidder so they are assured that they can buy a car. If you don't need a car but like to play 4D, bid $1 every month. Who knows, you might win. Then you sell it with a new car for 50% of the current COE the following month and maybe make a few bob. :wink:

http://www.lta.gov.sg/content/ltaweb/en ... t-coe.html

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Postby Wd40 » Sat, 22 Feb 2014 7:28 pm

Mi Amigo wrote:The only income tax change that affects me is the removal of the 30% rebate (capped at $1,500). It's missing from the YA 2014 calculator, so they obviously decided not to carry it over from last year:

http://www.iras.gov.sg/irasHome/uploadedFiles/Quick_Links/Copy%20of%20Tax_Cal_Final_170211_IRAS.xls


You are right! Damn! so that was a one off thing for last year :( So I need to $1500 extra this year. Bummer!

But the strange thing is none of the news websites or other research firms like PwC or Deloitte have bothered to mention this.

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Postby sundaymorningstaple » Sat, 22 Feb 2014 8:20 pm

They didn't need to. You should have read your tax assessment last year. :-|

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Postby Mi Amigo » Sun, 23 Feb 2014 5:23 pm

Wd40 wrote:
Mi Amigo wrote:The only income tax change that affects me is the removal of the 30% rebate (capped at $1,500). It's missing from the YA 2014 calculator, so they obviously decided not to carry it over from last year:

http://www.iras.gov.sg/irasHome/uploadedFiles/Quick_Links/Copy%20of%20Tax_Cal_Final_170211_IRAS.xls


You are right! Damn! so that was a one off thing for last year :( So I need to $1500 extra this year. Bummer!

But the strange thing is none of the news websites or other research firms like PwC or Deloitte have bothered to mention this.

Actually IIRC Deloitte (in a web page that has now disappeared) were suggesting that it would be a good idea to keep the rebate in place for another year. This was in a 'wish list' article of things they'd like to see, published before the budget.
Be careful what you wish for


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