Many won't gain from medical tax break idea25 Apr 2008
I REFER to Mr Ng Cher Hwa's letter last Friday, 'Allow tax relief for medical expenses'.
Contributions to the Medisave account from personal income up to an annual cap are not subject to tax.
Therefore, payments of medical expenses drawn from the Medisave account are in effect already enjoying tax relief.
Providing additional tax reliefs for personal medical expenses will not benefit many as two-thirds of our working population do not pay any income tax.
The Government helps Singaporeans with their medical expenses directly through the subsidies to our restructured hospitals.
This is a more effective way as it reduces the upfront payments that patients need to make, benefits all Singaporeans regardless whether they are income tax paying, and allows the Government to provide higher subsidies to those (Singaporeans) who need greater support.
CHIN SAU HO
DIRECTOR (CORPORATE COMMUNICATIONS AND SERVICES)
MINISTRY OF FINANCE