Review how GST rebates are distributed

THE Central Provident Fund Board recently issued a general circular letter, 'GST credits for 2010' and the schedule, 'Benefits for households in 2010'.

Those living in HDB three-, four- and five-room flats will receive goods and services tax rebates that are double the amount given to those who live in private property. Is this fair?

Some Singaporeans who live in HDB flats could be far richer than those living in private apartments.

I hope the Government will review this simplistic approach in handing out rebates.

Money handed out by the Government to Singaporeans should not be taken lightly or governed by administrative convenience, as a dollar saved is a dollar more in the state coffers. The amount saved can be used to help the needy.

The Government should not be over-generous in giving money to super-rich HDB dwellers, whose rebates are not even enough to pay for their expensive car tyres or rims.

Tan Kok Tim

Clivebenss

7 Jun 10, 15:07

how about moving to HDB?

hasene

7 Jun 10, 16:08

Tan Kok Tim has no data on what is the percentage of super rich HDB dwellers. Generally, HDB dwellers bought HDB flats because they cannot afford the private property. The super-rich HDB dwellers he refers to are just the miserable minority.

Jealousy drives Tan Kok Tim to write such letter. Sour grape!

He can approach his MP to voice out his concern.

Clivebenss

7 Jun 10, 16:27

Greed.

hasene

7 Jun 10, 16:30

Greed?! Greed is growing amongst the locals????? haaahahha, it even takes its root in mega church, hahahah

ditzy

7 Jun 10, 16:33

Rich people drive GTR, and live in 3 room flats.

hasene

7 Jun 10, 16:41

In your dream. Few are filthy rich who stay in 3 room flat. There are increasing number of loansharks spraying words to demand for loan payment in 3-room HDB flats.

Clivebenss

8 Jun 10, 13:24

Jun 8, 2010 - ST Forum

Income and wealth checked for GST credits

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