Wednesday, December 02, 2009

Holiday trip spoilt by GST shock at airport (ST Forum 2 Dec 2009)

MY FAMILY recently returned from a holiday in Europe.

As usual, we bought some gifts from the countries we had visited.

But we were stunned when the Customs officers stopped us and slapped us with 7 per cent goods and services tax (GST) for the gifts we purchased abroad.

Even the watch I was wearing on my wrist was not spared.

We were told that the maximum limit for gifts purchased overseas is $300 - anything exceeding that is taxable.

I checked with many friends and relatives and none of them knew that this rule exists, not even the tour agency.

Needless to say, the incident dampened our spirit after a great holiday.

Patrick Lim

(source: www.straitstimes.com/STForum/OnlineStory/STIStory_461188.html)

My Comments:
I did not know that the max limit for gifts purchased overseas is just $300 until now.

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