TBh just look at your ia: Microeconomics IA

Analysis

In 2018, Singapore introduced 9% tax on digital services to reduce government budget burden. Resulted in revenue of 90 Million singapore dollar

Evaluation

Pros

• The GST on digital services can increase government revenue, which can be used to fund public goods and services.
• The tax may encourage businesses to develop more competitive pricing strategies.

Cons

• The GST may lead to a decrease in consumer welfare due to higher prices.
• The tax may disproportionately affect low-income households who rely heavily on digital services.
• Businesses may experience a decline in revenue and profit margins, potentially affecting innovation and economic growth.