Dec 2, 2009
Holiday trip spoilt by GST shock at airport
MY FAMILY recently returned from a holiday in Europe.
As usual, we bought some gifts from the countries we had visited.
But we were stunned when the Customs officers stopped us and slapped us with 7 per cent goods and services tax (GST) for the gifts we purchased abroad.
Even the watch I was wearing on my wrist was not spared.
We were told that the maximum limit for gifts purchased overseas is $300 - anything exceeding that is taxable.
I checked with many friends and relatives and none of them knew that this rule exists, not even the tour agency.
Needless to say, the incident dampened our spirit after a great holiday.
Ignorance does not meant you are not guilty.
This letter serve no purpose except to remind the rest that such rules exist.
I knew this requirement long ago and has been telling my friends about it.
Dear all, Please note you are required to pay GST for you over-sea purchase if they exceed $300. Note it is total worth and not individual items.
So do not waved your new LV bags, which are still in their paper bags in front of the custom officer, any jokers will know you should declare and pay your GST.
Peter and his many friends and relative need to know the rule book man.
The custom has been closing one eye for many years but I guess now Singapore’s economy is not very good and gahment is noticing people of spending their cash over-sea to avoid the GST here. Therefore to dig more money from us, the are really strict at the custom now. Also I got a tip that GST will go up to 10% after the next election as MIW had spent too much on the Stimulus package and I guess they will not increase the corporate tax in order to attract foreign investments.
Sad… the rich the richer, less taxes, the poor get the stimulus package, and the middle income get SQUEEZED again and again. Time to migrate…