GOODS AND SERVICES TAX (On goods purchased at Johore Bahru)

Mr Chiam See Tong asked the Minister for Finance whether, from 1st April, 1994, Singaporeans who purchase goods at Johore Bahru will have to pay Goods and Services Tax or other form of tax on those goods when they bring them into Singapore.

Mr Chiam See Tong (Potong Pasir): Mr Speaker, Sir, before I ask Question No. 3, I would like to declare my pecuniary interest in respect of Question No. 4 (Cols. 123 - 124) for Written Answer. Question No. 3, Sir.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, all goods brought into Singapore, whether by air, road, rail or sea will be liable for GST. However, all bona fide travellers entering Singapore will be allowed to bring in a reasonable amount of goods for their own use without having to pay GST.

The value of goods which each person may bring into Singapore free of GST will be announced at a later date, but the amount will be reasonably generous. Singaporeans returning from visits to Johore Bahru should therefore not face any problems unless they are importing large quantities of goods.

Relief from GST will not be extended to liquors and tobacco.

Mr Chiam See Tong: Sir, it would be rather difficult to gauge this "reasonable amount" that the Minister is talking about. Does the Minister require those who come back to Singapore from Johore Bahru to produce receipts of their purchase to prove the amount?

Dr Richard Hu Tsu Tau: At the moment, our Customs officers at the airport use their discretion in waiving duties on the basis that travellers are asked, "Are you bringing in any substantial goods or do you have anything to declare?" They will use the same discretion in allowing through goods free of GST. The objective is not to cause congestion at the Causeway.

Mr Chiam See Tong: Is this "reasonable amount" that is allowed confined to Singaporeans or to all other people as well?

Dr Richard Hu Tsu Tau: To all other persons entering Singapore.