7% GST exemption on Gold

[Without_a_car]

Business Times - 17 Feb 2012

http://www.businesstimes.com.sg/sub/storyp...,478378,00.html?

 

BUDGET - Reaction

S'pore now comparable to rivals with GST exemption on gold : PwC

 

By ANGELA TAN

 

The exemptions of investment grade gold from GST will effectively make physical gold 7 per cent cheaper overnight.

 

'In one stroke, it has made the price of gold in Singapore comparable with other locations such as Hong Kong and Malaysia , which do not have a GST regime,' Yip Yoke Har, Tax Partner at PwC Services LLP (Singapore) said.

 

Earlier, Deputy Prime Minister and Finance Minister, Tharman Shanmugaratnam, said in his Budget speech on Friday, that the government will facilitate the development of gold trading, which can draw on Singapore's strengths as an international financial centre and trading hub, to meet strong demand for investment-grade gold in Asia.

 

He said Investment-grade gold and other precious metals will be exempted from GST.

 

'This change brings our tax treatment of investment-grade gold and precious metals in line with the practices of many developed economies, like Australia, UK and Switzerland,' Mr Tharman said.

 

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[Vid]

Business Times - 17 Feb 2012

http://www.businesstimes.com.sg/sub/storyp...,478378,00.html?

 

BUDGET - Reaction

S'pore now comparable to rivals with GST exemption on gold : PwC

 

By ANGELA TAN

 

The exemptions of investment grade gold from GST will effectively make physical gold 7 per cent cheaper overnight.

 

'In one stroke, it has made the price of gold in Singapore comparable with other locations such as Hong Kong and Malaysia , which do not have a GST regime,' Yip Yoke Har, Tax Partner at PwC Services LLP (Singapore) said.

 

Earlier, Deputy Prime Minister and Finance Minister, Tharman Shanmugaratnam, said in his Budget speech on Friday, that the government will facilitate the development of gold trading, which can draw on Singapore's strengths as an international financial centre and trading hub, to meet strong demand for investment-grade gold in Asia.

 

He said Investment-grade gold and other precious metals will be exempted from GST.

 

'This change brings our tax treatment of investment-grade gold and precious metals in line with the practices of many developed economies, like Australia, UK and Switzerland,' Mr Tharman said.

 

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[Jrage]

not really.. gold has just increase 10% over the last few days..

if you had bought wks back.. you are looking at 20% increase...

Given that gold is still a long way from their all time high of usd1900. buying gold w/o gst will still be good.

 

aniway, just called uob, there is no official notice of removing the gst payable yet... :| cant get more yet..

 

[Jasonjst]

Why exemption on Gold and not on Rice ? Is it because the rich and elite buy more gold than rich ? Anyway the poor are being screwed again ? Rice is the poor man Gold , my friend .

Edited February 23, 2012 by Jasonjst

[Without_a_car]

Why exemption on Gold and not on Rice ? Is it because the rich and elite buy more gold than rich ? Anyway the poor are being screwed again ? Rice is the poor man Gold , my friend .

 

Budget must also take care of the rich right?

[Jasonjst]

Budget must also take care of the rich right?

 

Ya you are right budget to take good care of the rich , to screw the poor harder . Imagine they buy 10M worth of gold , 7% is 700K . can go geyland and screw until die c--k stand , haha

Edited February 23, 2012 by Jasonjst

[Without_a_car]

Ya you are right budget to take good care of the rich , to screw the poor harder .

 

wait rich complain budget never take care of them how?

[Jim]

wait rich complain budget never take care of them how?

 

We are talking about investment grade gold here, ie gold bar, gold coins not gold jewelry or gold watch. Investment grade gold is essentially money. If you dont pay GST when you take a loan, exchange money, open a fixed deposit or buy shares, why should you pay GST on investment grade gold? I think it is a good move. The genuinely rich will buy and store their gold elsewhere if we charge GST anyway.

 

I always wanted to buy some gold to give my wife and kids for that "last boat ride out of Singapore", and I almost did so in Hong Kong until I realised bringing it back meant I have to declare and pay GST. LPPL.