New Singapore Shares

IMPACT OF NSS & OTHER OFF-BUDGET MEASURES

The Ahmad Family - Middle Income Household

The Ahmad family lives in a 4-room HDB flat. Mr Ahmad is an active Nsman and earns $2550⁵ per month as an assistant mechanical engineer while Mrs Ahmad earns $1100⁶ per month as a library attendant. They have 2 school going children who are below 12 years old.

⁵ Median gross wage of an assistant mechanical engineer $2,554, based on Report on Wages in Singapore 2000, MOM

⁶Median gross wage of a female office/library attendant is $1,126, based on Report on Wages in Singapore 2000, MOM. Typical average household income of 4 room flat is $3,546/month in 1998, based on Profile of Residents Living in HDB flats (HDB, March 2000)

• NSS shares. As an active NSman, Mr Ahmad will get $800 worth of New Singapore Shares while Mrs Ahmad will receive $1400 worth of New Singapore Shares . They can cash out half of the $2200 straightaway.
  
  

• S&C rebates. With the new off-budget package, the family will not have to pay S&C charges for 3 months in March, June and December in 2002. Under the previous S&CC rebate package announced by the Minister of Finance in the Budget in Feb 2001, they won’t be paying S&C charges for December 2001 either.
  
  

• Utilities rebates. With the extension of Utilities Save, a scheme to help HDB households with their utilities bill, they will be getting $300 spread out over ten months, or $30 a month from July 2002, when the current scheme ends.
  
  

• Tax Rebates. With the new off-budget package, taxpayers will enjoy an additional 5% tax rebate, on top of the 10% rebate announced in 2001 Budget Statement. Mrs Ahmad’s annual income, assuming a 13th month bonus, is $14,300. She is not taxable even without the 15% tax rebate as a result of the $500 rebate. However Mr Ahmad pays tax. His annual income, assuming a 13th month bonus, is $33,150. As a result of the 15% tax rebate, he saves $90. His net tax payable is $11 in 2001. Mr Ahmad will enjoy a 10% tax rebate in 2002, as announced in the off-budget package.
  
  

The Ahmad family will enjoy $2,334 of benefits from the NSS shares, S&C rebates, Utilities Save and the 15% income tax rebate.