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.