I was just thinking about how “kiasu” Singaporeans always buy their fill of liqour and wine when they are coming back from the travel. I believe that a lot of them buy because of being “kiasu” rather than for actual consumption. I am one of them. Since army days, I have bought this stupid XO and till now, I have yet to consume it.
With the recent hike in GST… to 7%…. I am even more tempted to buy… (or am I wrong? do u get charged GST in airport? Shouldn’t right?)
Since everybody is entitled to 2 bottles of wine and brandy when coming back to Singapore. Why not set up a system that let people have a chance to sell their wine at a price > duty free but < market price. There seems to exists an arbitrage opportunity. In fact, it can be tied in with travel packages… and the profit… can be used to subsidise the air tickets. Why? It might even make travelling on Tiger Airways free!
And better still! People can state exactly what kind of wine, electronic goods that they will like…..
Currently, I think only will work for wine and cigarettes with very high taxes! But if GST one day becomes like VAT, 21%… who knows?