The $70 Passport Renewal Fee

What does the $70 passport renewal fee tells you about this Govt?

I have often heard this complaint of the high passport renewal fee, but just shrugged it off as another of those daily complaints by typical Singaporean. After all, you pay it only once in 5 years, as the passport is valid for 5 years.

But when a coffeeshop cleaner started grumbling about the fee, and that he will not be renewing his passport, I decide to put myself in his shoes, and analyse the situation he is facing that is so serious, that it caused him not to have a passport at all.

More importantly, what he doesn't understand is, why the regime of LKY charged only a token sum of $10 for a new passport but the current regime is charging such high fee that it deterred him from having a passport altogether?

Let's look at the numbers. There are about 3.3 million Singaporeans, and over 5 years, these people would have paid 3.3million x $70 or about $47 million to the government's coffer. Divide that by 5 and you have approximately $9.4 million per year of collection.

Based on what we heard from Heng Swee Keat, every year we have a surplus of $1 billion to $10 billion, every year.

Except for the recession year some time in 2009, which happened only once a lifetime. And that is also because the Govt chose to dig into the Reserves, even though they can chose not to, and we would have been OK.

Important Reminder - One billion is 1,000 millions. So even if the govt decide to pay for all the passport renewals, it will be less than an insect bite to the Govt. So why did this new regime under Lee Hsien Loong, is determine to hit Singaproeans with "fine" for renewing their passport?

Just to put things more in perspective, the casino levies collected from Singaporeans and PR came to $134 million a year in 2017. More than enough to pay for all passport renewals, by more than 13 times.

And I haven't even talked about other forms of gambling levy in other legalized gambling outlets, and other form of taxes, GST, COE, etc.

By the way, passport fees are regressive, just like the GST. It means the poor will be the hardest hit. It is like robbing the poor to pay for the rich. You may google to find out why GST is regressive, it will be another topic for now.

Questions surfaced after this simple analysis.

1. Wouldn't it be better politically for him to stick to previous policy of the previous administration? Give something back to the people? In this case, every Singaporean will benefit. Take it as a personal right for all Singaporeans to travel freely, without any financial barrier or restriction?

2. This analysis also threw out the govt's argument that fee had not been increased over the years, and the need to cater for rising cost. It is obvious that it is a blatant lie, a total rubbish in more layman's term. Is it not?

3. All these fee increases, in this case by over 7 times, would have taken away the so-called cash distribution in the form of GST rebates. Last known was $300 annually for those eligible. Would it not?

For all the items above, looking at it from a non-partisan or non-biased view, it is quite obvious that the govt doesn't really care too much about it's people when come to money.

In fact, the govt's attitude is that of, EVERY CITIZEN OWES THE GOVERNMENT, (regardless of your financial background, race or religion) and not the way around. The govt has created a world class country that is safe for you to stay and be proud of, you must pay them for that, regardless.

So they will not hesitate to impose, if deemed fit, any form of charges, fees, rates, fares, taxes and salary increases for themselves. And, if deemed fit, to increase the existing ones.

Whatever form of subsidies or grants that they offer you, will be taken back from you eventually in other forms.

And all these money collected from you, the people, will be channelled to the Sovereign Fund held by Temasek and the GIC. The monies will be invested oversea, not you and me.

Although there are strict provisions for it to be used for the country under very unlikely circumstances, you are not likely to ever see those money again in your lifetime. For the people, these monies can be written off as bad debt.