'Not the time' for environment tax on SIA during crisis, says Transport Minister Ong Ye Kung to WP's Jamus Lim

[kobayashiGT]

'Not the time' for environment tax on SIA during crisis, says Transport Minister Ong Ye Kung to WP's Jamus Lim

source:https://mothership.sg/2020/10/environment-tax-jamus-lim-ong-ye-kung/

Slapping an environment tax on the Singapore Airlines (SIA) in the current climate would be akin to hurling stones at someone who has fallen into a well.

Transport Minister Ong Ye Kung used the Chinese phrase "落井下石", when describing the potential effect of such a tax during a debate in Parliament on Oct. 6.

Ong had given a Ministerial Statement on the plan to reopen Singapore's borders and revive air travel, and in his speech, referred to Workers' Party Member of Parliament Jamus Lim's suggestion of a per-flight environmental tax for SIA's proposed "flights to nowhere."

He said:

"Whichever way SIA had decided, MOT would always try our best to support our national carrier in times like this. But what I will not contemplate is to impose on them an environment tax at this time, as Associate Professor Jamus Lim has suggested, because that will worsen the crisis for SIA."

"Not the time" for environment tax

In a follow-up question, Lim asked Ong to "clarify his thinking", explaining that an environment tax could be borne either by the consumer or the producer, depending on the price elasticity of the product on offer (the flight), and SIA could still find it economically viable if it is able to pass on the cost to the consumer.

In reply, Ong said this could have been considered, had it not been for the current pandemic and the dire situation SIA is in.

He pointed out that it was not a matter of passing on the cost to the customer, because there are practically no customers at the moment, citing a passenger volume of just 1.5 per cent.

Ong added that if it were not for SIA's recapitalisation exercise, the entire company would have gone under.

As SIA needs to preserve as much cash as it can at the moment, "this is really not the time" to talk about an environment tax, said Ong.

He then used the Chinese phrase to illustrate his point:

"I think there's a Chinese saying, 落井下石. I would have made the situation much worse for SIA. It means someone fell into the well and you throw a stone to make the situation worse. So let's be very careful about that. When things resume, the international conversation will go on (as to) whether there should be an environment tax.

Slapping an environment tax on the Singapore Airlines (SIA) in the current climate would be akin to hurling stones at someone who has fallen into a well.

Transport Minister Ong Ye Kung used the Chinese phrase "落井下石", when describing the potential effect of such a tax during a debate in Parliament on Oct. 6.

Ong had given a Ministerial Statement on the plan to reopen Singapore's borders and revive air travel, and in his speech, referred to Workers' Party Member of Parliament Jamus Lim's suggestion of a per-flight environmental tax for SIA's proposed "flights to nowhere."

He said:

"Whichever way SIA had decided, MOT would always try our best to support our national carrier in times like this. But what I will not contemplate is to impose on them an environment tax at this time, as Associate Professor Jamus Lim has suggested, because that will worsen the crisis for SIA."

SIA has already decided not to pursue the idea.

"Not the time" for environment tax

In a follow-up question, Lim asked Ong to "clarify his thinking", explaining that an environment tax could be borne either by the consumer or the producer, depending on the price elasticity of the product on offer (the flight), and SIA could still find it economically viable if it is able to pass on the cost to the consumer.

In reply, Ong said this could have been considered, had it not been for the current pandemic and the dire situation SIA is in.

He pointed out that it was not a matter of passing on the cost to the customer, because there are practically no customers at the moment, citing a passenger volume of just 1.5 per cent.

Ong added that if it were not for SIA's recapitalisation exercise, the entire company would have gone under.

As SIA needs to preserve as much cash as it can at the moment, "this is really not the time" to talk about an environment tax, said Ong.

He then used the Chinese phrase to illustrate his point:

"I think there's a Chinese saying, 落井下石. I would have made the situation much worse for SIA. It means someone fell into the well and you throw a stone to make the situation worse. So let's be very careful about that. When things resume, the international conversation will go on (as to) whether there should be an environment tax."

Further clarifications by Lim online

Later in the day on Oct. 6, Lim shared a Facebook post explaining his position further.

Lim said that he is proud of SIA and wants the industry to survive, and his suggestion of an environment tax would be borne by wealthier customers who would be more willing to take a proposed "flight to nowhere."

Lim added that he was hoping to "spur some creative thinking about how we can help ensure the future viability of our national airline, without compromising the need to pay attention to the environment, too".

He said that "such creative thinking is necessary to ensure that we don’t spend our hard-earned reserves in an unwise fashion".

On Oct. 7, Home Affairs and Law Minister K Shanmugam shared a video of the exchange between Ong and Lim, reiterating why Lim's environment tax "is not a great idea right now, when SIA staff jobs are at stake".

 

[Mockngbrd]

Can make it not the right time to tax for me also?

[Vinceng]

"...Slapping an environment tax on the Singapore Airlines (SIA) in the current climate would be akin to hurling stones at someone who has fallen into a well."

Very well said, just as how Foreign Talents have robbed S'porean PMETs of jobs and many end up as Private Hire Drivers.

[Vid]

Never the right time for GST increase also

[Enye]

wah...why i still paying last year income tax when my income this year has fallen?

落井下石

😢

[Watwheels]

Our transpork ministry dont have double standards but has triple standards when it comes to gas/carbon emissions.

Ships has one standard, no emission tax or carbon tax. They spew out so much black smoke, no problem.

Airplane has its own standard. Like we are seeing here, can change as and when it's time or not.

Cars emitting the least amount of harmful gases compared to ships and airplanes, have all kinds of standard, all the whatever tax applies. 

See how the 3 types of standards apply here?

[Wt_know]

must print big big and frame this up liao 

 落井下石

if ah gong raise simi GST, TAX, WATER, SUGAR, TRANSPORT, ELECTRICITY, ... simi sai ... can COPY & PASTE ...  

[13177]

Not the first time they have double or triple standard? 

[Watwheels]

22 minutes ago, Wt_know said:

must print big big and frame this up liao 

 落井下石

if ah gong raise simi GST, TAX, WATER, SUGAR, TRANSPORT, ELECTRICITY, ... simi sai ... can COPY & PASTE ...  

Not forgetting 火上加油.

[Throttle2]

45 minutes ago, Mockngbrd said:

Can make it not the right time to tax for me also?

No no no, all the time is the time to tax you .must rebuild our reserves mah.....heehee....ooops

Edited October 8, 2020 by Throttle2

[Mockngbrd]

9 minutes ago, Throttle2 said:

No no no, all the time is the time to tax you .must rebuild our reserves mah.....heehee....ooops

but i having crisis le

[Throttle2]

Just now, Mockngbrd said:

but i having crisis le

Really? Simi crisis?  Me too, i jobless almost 5 yrs already

[Wt_know]

49 minutes ago, Mockngbrd said:

but i having crisis le

nothing GST voucher and U-Save chicken wing cannot solved ... muahahaha

Edited October 8, 2020 by Wt_know

[Kopites]

1 hour ago, Enye said:

wah...why i still paying last year income tax when my income this year has fallen?

落井下石

😢

Medi shield and DPS premium going up! 

What? Throw stone into the well?😬

[Kopites]

1 hour ago, Wt_know said:

must print big big and frame this up liao 

 落井下石

if ah gong raise simi GST, TAX, WATER, SUGAR, TRANSPORT, ELECTRICITY, ... simi sai ... can COPY & PASTE ...  

Too late. 

Medi shield and DPs all going up.

[Kopites]

58 minutes ago, Throttle2 said:

Really? Simi crisis?  Me too, i jobless almost 5 yrs already

Your name in one of the recent article? "Singapore added 3 more billionaire" ?

[Throttle2]

12 minutes ago, Kopites said:

Your name in one of the recent article? "Singapore added 3 more billionaire" ?

Mai suan leh.  
 

[1fast1]

Didn't trouble themselves to rescue Hyflux before (which was a local concern invested in by Temasick and local retail investors) - which is fine.

But why give special treatment to SIA, which has been publicly pilloried for having made bad decisions and is, after all, just another publicly held company too.

I'm fine with SIA going under in its current form. Someone will buy it up cheap and it will gradually build up again post-pandemic. National carrier or not doesn't matter, everything else is on sale here to the highest bidder, so why not?