Our NSmen play
a crucial role in guaranteeing the security and
prosperity of Singapore. In Year of Assessment
1993, the Government introduced tax reliefs for
NSmen of $1,000 for active NSmen and $500 for
other NSmen in order to recognise their special
contributions. However, the value of these reliefs
have been eroded by subsequent reductions in personal
income tax rates. The Government has reviewed
the amount of these reliefs and decided:
The relief for active NSmen
will be doubled from $1,000 to $2,000. Active
NSmen are those who are called up annually for
in-camp training and other activities to maintain
their operational efficiency. The relief for all
who have done their full time national service
but are not now in the active national service
will also be doubled from $500 to $1,000.
In addition, the Government
also recognises the contribution of parents and
wives of NSmen to Total Defence. The parents are
the ones who brought up the NSmen. The wives have
to share the burden of looking after the family
when the NSmen are called up for in-camp training.
The Government has therefore decided to extend
the tax relief scheme for NSmen to the parents
and wives of NSmen who are themselves Singapore
citizens. Each parent will receive a tax relief
of $500, regardless of the number of children
who have undergone national service. Wives of
NSmen will also each receive a tax relief of $500.
The $500 relief is half the amount for NSmen who
are not now in active national service.
The tax reliefs will apply to
NSmen and the parents and wives of NSmen who have
served in the SAF and also in other services,
like the Police Force and the Singapore Civil
Defence Force. These reliefs will take effect
from Year of Assessment 1997. The estimated revenue
loss is $16 million.