Which of the following refers to a form of government payment to a producer?
|
A subsidy is a form of government intervention, it usually involves a payment by the government to suppliers that reduce their costs of production and encourages them to increase output of a good or service. Show
Revision on other types of government intervention: Evaluating Government Intervention - revision videoQuizlet Revision Activity on Government InterventionRead Online (Free) relies on page scans, which are not currently available to screen readers. To access this article, please contact JSTOR User Support . We'll provide a PDF copy for your screen reader. With a personal account, you can read up to 100 articles each month for free. Get StartedAlready have an account? Log in Monthly Plan
Yearly Plan
Log in through your institution Purchase a PDFPurchase this article for $14.00 USD. How does it work?
journal article WHAT IS A GOVERNMENT SUBSIDY?National Tax Journal Vol. 20, No. 1 (March 1967) , pp. 86-92 (7 pages) Published By: The University of Chicago Press https://www.jstor.org/stable/41792130 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $14.00 - Download now and later Journal Information The goal of the National Tax Journal (NTJ) is to encourage and disseminate high-quality original research on governmental tax and expenditure policies. The focus of the NTJ is economic, theoretical, and empirical analysis of tax and expenditure issues, with an emphasis on policy implications. The NTJ is published quarterly under the auspices of the National Tax Association (NTA). Publisher Information Since its origins in 1890 as one of the three main divisions of the University of Chicago, The University of Chicago Press has embraced as its mission the obligation to disseminate scholarship of the highest standard and to publish serious works that promote education, foster public understanding, and enrich cultural life. Today, the Journals Division publishes more than 70 journals and hardcover serials, in a wide range of academic disciplines, including the social sciences, the humanities, education, the biological and medical sciences, and the physical sciences. Rights & Usage This item is part of a JSTOR Collection. Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT. GST exemptions apply to the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, and the importation and local supply of investment precious metals. Goods that are exported and international services are zero-rated. Taxable and non-taxable goods and servicesThe table below lists the categories and types of taxable and non-taxable supplies. Taxable supplies
Non-Taxable supplies
Businesses required to register for GSTIf your business taxable turnover does not exceed $1 million, you may still choose to voluntarily register for GST after careful consideration. Charging and claiming GSTOnly GST-registered businesses can charge and claim GST from their effective date of GST registration. Non-GST registered businesses are not allowed to charge or claim GST. Charging GSTIf you are registered for GST, you must charge GST on all taxable supplies at the prevailing GST rate, except for supplies that are subject to customer accounting. The GST that you charge and collect is known as output tax. Output tax must be paid to IRAS within a month from the end of the accounting period. Refer to our page on filing and payment due dates for more information. If you have wrongfully charged or collected GST, you must remit the GST wrongly collected to IRAS.
ExceptionClaiming GSTIf you are registered for GST, you can claim the GST incurred on business purchases (including imports) and expenses, as input tax in your GST return. This is subject to you fulfilling the conditions for claiming input tax.
ExceptionThere are exceptions where non-GST registered businesses in specific industries are given concessions (subject to conditions) by the Minister to claim the GST incurred. These exceptions are:
To claim the GST incurred, qualifying funds, S-REITs and S-RBTs need to submit a quarterly Statement of Claims to IRAS within one month from the end of the respective quarters. As an administrative concession, funds and trusts may file their quarterly Statement of Claims after the due date, subject to the following conditions:
For example: Period of claims: 1 Apr 2017 to 30 Jun 2017 Qualifying funds, S-REITs and S-RBTs can submit the Statement of Claims latest by 30 Jun 2022. Additionally, you may be able to claim GST incurred before GST registration or incorporation, provided that you fulfil certain conditions. For more information, please refer to our page on claiming GST incurred before GST registration/ incorporation. This input tax credit mechanism ensures the taxation of only the value-add at each stage of a supply chain.
Example 1: How a business charges output tax and claims input taxA GST-registered manufacturer imports leather from overseas to manufacture a
bag. The manufacturer sells the bag to a GST-registered retailer. Thereafter, the retailer sells the bag to a consumer.
Paying output tax and claiming input taxIf you are a GST-registered business:
FAQs
Why must Singapore implement GST?GST was introduced in 1 Apr 1994 to enable Singapore to shift its reliance from direct taxes to indirect taxes. GST has also enabled Singapore to sustain a lower income tax rate. Being a tax on consumption, and not income, GST inherently encourages savings and investments. What is a government subsidy?Subsidies are payments, tax breaks, or other forms of economic support given by governments to certain industries or economic sectors. The goal of subsidies is to aid or support what are deemed to be key parts of the economy or national infrastructure.
What is an example of a government subsidy?Cash subsidies simply entail the government giving a sum of cash directly to a business or organization. One example of a common cash subsidy in the U.S. can be found in the renewable energy industry—cash subsidies are given to private businesses in the renewable energy sector to stimulate the growth of that industry.
What are the types of subsidies?Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates). Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical.
How do governments use subsidies?Governments sometimes keep prices artificially high, which is the case with subsidies intended to boost the incomes of farmers. They may offer services, such as a university education or a subway ride, at below cost. They may pay some of the interest on loans used to finance construction of a road or a power plant.
|
