Income And Wealth Checked For GST Credits08 Jun 2010
MR TAN Kok Tim ('Review how GST rebates are distributed'; yesterday) suggested that it is unfair to give Singaporeans goods and services tax (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 properties. We thank him for his feedback.
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 low incomes and 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 live in HDB flats or private properties.
LIM BEE KHIM (MS)
DIRECTOR (CORPORATE COMMUNICATIONS)
MINISTRY OF FINANCE