GST Credits Given Based On Both Income And Place Of Residence
08 Jun 2010MR Tan Kok Tim ('Use GST rebates in a better way', BT June 3) suggested it is unfair to give Singaporeans GST credits based on their place of residence alone, as some Singaporeans living in HDB flats are more well-off than those staying in private property.
For the reason cited by Mr Tan, the government uses both an individual's income (annual assessable income) and the annual value of his residence to determine the amount of GST credits he receives.
Taken together, the two criteria provide a reasonable proxy for a person's means, as they reflect both his income and his wealth.
Those who have both low incomes and who live in lower-value HDB flats receive the largest quantum of GST credits. Similarly, those with high incomes (annual assessable income of more than $100,000) receive lower payouts, regardless of whether they stay in HDB flats or private properties.
We thank Mr Tan for his feedback.
LIM BEE KHIM (MS)
DIRECTOR (CORPORATE COMMUNICATIONS)
MINISTRY OF FINANCE