People Are Opting to Pay in Full for CNY 2023 Dinner Now to Avoid the GST Increase in 2023

By
Isaac Goh
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Looking to save a few dollars here and there?

Try buying all your things this year before next year’s goods and services tax (GST) hike. 

Many are doing that, and some even took this to the next level. 

Material objects aside, people are now paying for their meals beforehand to avoid the 1% price increase. 

People Are Opting to Pay in Full for CNY 2023 Dinner Now to Avoid the GST Increase in 2023

Shin Min Daily News reported that diners in Singapore are now opting to pay for their 2023 CNY Dinner in full to avoid forking out that extra 1% in GST. 

In case you didn’t know,  the GST hike from 7% to 8% will be implemented on 1 January 2023. In other words, we have less than a month to make the most of our money. 

Capitalising on this, many Singaporeans, as opposed to putting a down payment for their meal, have chosen to pay for it in full now. 

On the restaurant’s end, they have used this as a marketing strategy, making dining packages available for pre-order while highlighting the lower tax. 

In an interview with Zaobao, CEO of Dian Xiao Er Samuel Yik revealed that pre-paid customers make up about 70% of all food orders. 

As for the rest, they chose to put a down payment for half of the total bill for fear that plans might change. 

Dian Xiao Er isn’t the only restaurant experiencing this. 

Tung Lok Group CEO Andrew Tjioe has also added that their restaurants allowed diners to pay for next year’s meal at this year’s prices. Adding on, he said that it was a consensus reached between the restaurants and their customers. 

“It’s like tailoring an outfit and paying it in full but collecting it next year to wear,” he said. 

Based on his observation, many who choose this route often host banquets and are not single-table-bookers. 

In these cases, that 1% saved is not a small sum. 

Some Restaurants Don’t Like It

Citizens aren’t the only ones who suffer increasing prices. Restaurants do as well. 

That’s why some places disagree with people paying for the meals in full now. 

Eric Chua, the second-generation owner of Teochew restaurant Chin Lee, told Shin Min Daily News that since costs of operation, catering, and ingredients are expected to rise again next year, it is unreasonable for consumers to follow this year’s prices. 

“Even if the customer asks to pay in advance when placing an order, we will calculate it based on next year’s price and tax rate.”

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Not All is Bad with the GST Hike

It seems like everyone’s dreading the GST hike now, but it’s not so bad for some of us. 

About 2.5 million adult Singaporeans will get at least $300 and up to $500 in cash under the one-off Cost-of-Living special payment.

2.9 Million adult Singaporeans will receive at least $100 and up to $200 in cash under the Assurance Package.

The amount you will receive is dependent on your assessable income for 2022, as well as how many properties you own:

Image: Ministry of Finance

These payments are meant to offset additional GST expenses for “at least five years” or ten years for lower-income households. This is even with the current high rates of inflation.

These payouts will be made from December 2022 to February 2023.

So, if you’re part of the lucky bunch receiving it in December, spend it quickly!

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Isaac Goh
Email: [email protected]