Media Statement
To help provide additional cushion to the increase in Goods and Services Tax (GST) as announced in the 2007 Budget on 15 February 2007, four social enterprises under the National Trades Union Congress (NTUC) will be taking steps to absorb the 2 percentage point increase in GST for a period of 6 months to one year.
The four social enterprises include three cooperatives, namely NTUC FairPrice, NTUC Foodfare and NTUC Childcare as well as NTUC LearningHub Private Limited. Collectively, their effort represents a savings of up to $5.1 million in GST for workers and the needy.
In addition to the GST absorption measure, NTUC FairPrice will provide extra assistance to the needy in light of the GST increase. Mr Ng Ser Miang, Chairman, NTUC FairPrice today announced that NTUC FairPrice will also give out $1 million worth of FairPrice vouchers to help the needy purchase essential items.
All in all, the labour movement will be providing a GST-Care package worth $6.1 million.
Mr Lim Swee Say, Secretary-General of NTUC said,” NTUC is happy with the workfare and GST offset measures that the Government announced yesterday. Whilst NTUC feels that these measures provide adequate relief, NTUC co-operatives will still do its part to provide additional cushion to the GST increase, in particular to the lower income group.”
This is not the first time that social enterprises under NTUC have come together to help workers lessen the impact of the GST. When the 3 percent GST was first implemented on 1 April 1994, NTUC co-operatives absorbed more than $13.1 million of GST which included GST absorption on essential items, club facilities and membership fees etc.
Similarly, when GST was increased subsequently to 5 percent in 2004, NTUC Childcare, NTUC Club, NTUC FairPrice, NTUC Foodfare, NTUC Healthcare and NTUC Income also absorbed the GST increase on basic necessities. The total cost of NTUC’s GST relief package then was more than $17.6 million.
Mr Lim said,” Given the improved economy, better wage increase, higher employment rate, and generous workfare and GST offset package, workers are in a better position to face the impact of the impending GST increase compared to the previous times. Even so, we hope that the GST-Care package offered by several of our social enterprises will encourage other retailers and service providers to do whatever they can to help our workers adjust to the increased GST.”
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Note to Editor
NTUC FairPrice will be issuing a separate media release on their GST Care package. Please refer to their media release for more details.
For media queries, please contact:
Chong Yan Cheng (Ms)
Consultant
Corporate Communications Department
National Trades Union Congress
DID 6213 8190
HP 9797 8985
Fax 6327 3749
About National Trades Union Congress
The National Trades Union Congress (NTUC) is a national federation of trade unions of workers in the industrial, service and public sectors representing more than 460,000 workers in Singapore. It has 63 trade unions and six associations affiliated to it. NTUC’s objectives are to help Singapore stay competitive and workers to remain employable for life; to enhance the social status and well-being of workers and to build a strong, responsible and caring labour movement.
Annex A
GST-Care Package
NTUC FairPrice:
NTUC FairPrice will absorb the 2 percentage point increase in GST for six-month on their basket of 400 Every Day Low Price items.
In addition, NTUC FairPrice will give out $1 million worth of FairPrice Vouchers to help the needy. These gestures will cost NTUC FairPrice $5.5 million.
NTUC LearningHub:
NTUC LearningHub will absorb the 2 percentage point increase in GST for one year. Estimated cost of this is $500,000.
NTUC Foodfare:
NTUC Foodfare will absorb the 2 percentage point increase in GST for 6 months and review it thereafter. Estimated cost of this is $120,000.
NTUC Childcare:
NTUC Childcare will absorb the 2 percentage point increase in GST for low income children for one year. Estimated cost of this is $60,000.
