Chairman, the chargeable income tax for the first $20,000 of one’s personal income is 0%. This has remained the case for many years. Even though the effective tax rate of 2% is in place for those earning between $20,000 to $30,000, a figure that comes up to $200, this amount is not insignificant, especially for low-income earners, much of whose salaries get spent on food and consumables.
An additional $200 to spend on such items can provide much respite and support for some families. For those who rent HDB flats under the rental housing scheme, and at the lowest tier, $200 can pay for seven months of rent. Would the Ministry be able to share how it determines the circumstances it takes into account in deciding when to raise its chargeable income threshold for the first $20,000, either to increase it, in view of rising prices and inflation?
Ministry of Finance
28 February 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2345
Office of the Leader of the Opposition 