Parenthood Policies Constantly Reviewed

We refer to Mdm Chen Ming Zhu's letter "No tax rebate for the fifth child" (LHZB 22 Aug 2007), which suggested to extend the Parenthood Tax Rebate to the fifth child.

2. Singapore's parenthood package, which was first introduced in 2001 and enhanced in 2004, provides support to help parents raise their children. The current measures were designed bearing in mind that the majority of Singaporean parents have one or two children. To encourage more births, the government offers various incentives including a higher Parenthood Tax Rebate of $20,000 that is provided for the third and fourth child. To provide rebates to cover higher order births would mean higher cost for the entire subsidy programme or a reduction of rebates for the third and fourth child to keep the cost the same. This would reduce the effectiveness of the programme.

3. We wish to assure Mdm Chen that the Government remains committed to encouraging marriage and parenthood in Singapore, and will take into consideration her suggestion on how we can better support Singaporeans in setting up and raising their families.

LOW YIN LENG
DEPUTY DIRECTOR (SOCIAL PROGRAMMES)
MINISTRY OF FINANCE