Okay, sales didn’t really decrease but I think it would probably decrease. On July 1, the GST would be 7% and NETS surcharge would be 1.5% to 1.8%.
The government of Singapore has upped the Goods and Service Tax (GST) from 5% to 7%. Foreign visitors aren’t affected since they get rebates the last time I heard. But Singaporeans will be affected. To help cope with the 2% increase, the government grants some aid to Singaporeans. I got SG$300. I don’t have much complaints about the GST increase.
And most of my friends have bought their stuff on the month of June. The recent computer trade shows has good sales too. It seems like quite a handful of people are snapping up items before the GST increase. So when the GST increase, shops can expect sales to drop on July. Most people I know who intended to buy computers bought theirs before July too. (They think they are getting a good deal by the way.)
GST is not the only fee increasing, NETS has also increase their surcharges from between 0.35 and 0.55 percent to 1.5 and 1.8 percent (around 3 to 4 times increase). This is unwelcomed by most retailers and consumers. Most Singaporeans prefer to use NETS instead of debit card and credit cards. I wouldn’t be surprised if retailers would increase tweak their prices to cover some NETS costs. Or worse, could even offer cheaper rates for cash payments by tagging every product with 2 different pricings - one for cash payment, the other for cashless payment systems.
NETS has been introduced to Singapore years back as a low-cost cashless payment system, as an alternative to Mastercard and Visa. It worked pretty well. Most Singaporeans with a local bank account can take advantage of this system. I kinda support cashless payments, it’s easy and safe. Aren’t we always talking about digital lifestyle and stuff? Increasing the NETS fees is just a step backward.