atans1

How to lessen GST impact rise and promote cashless payments

In Economy, Public Administration on 25/12/2019 at 4:25 am

This is my constructive, nation-building X’mas present for our millionaire ministers and senior civil servants, wrapped in the form of a suggestion.

We know that in the coming Budget sure got incentives to make us less unhappy with 2 points GST rise.

Here’s an idea we can copy and paste from Japan both to lessen the impact of GST rise on consumer spending and, as a bonus, promote cashless payments. Remember Brownfacegate? Brownfacegate: Fake indignation? and Brownfacegate: The inside story?.

Its consumption tax (GST) was hiked by 2 points on October 1. Customers who transacted cashlessly in SMEs, are able to receive reward points to offset the tax increase.

 The response by the SMEs, revealed the Ministry of Economy, Trade and Industry on Monday has been unexpectedly strong. Since May, when the scheme was first mooted, 940,000 shops, restaurants and other consumer-facing businesses have registered for the scheme — a process that forced many of them to bring cashless payment terminals into their stores for the first time.

FT

And Japan is not the only govt. From next year, the Italian govt plans to offer financial bonuses to those who use cards or other electronic payment systems.

Btw, FT also reported that a Nomura survey of why businesses were reluctant to introduce cashless payment terminals found that the answer was high fees. Hawkers were KPKBing here too when e-payments were trialled in a few hawkers’ centres. Any idea of what happened since then? I never patronised any of them.

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