Some 1.37 million Singaporeans will each be getting a one-off GST Voucher of worth up to S$200 this month, said the Ministry of Finance (MOF) on Wednesday (Nov 01). TODAY file photo
SINGAPORE - Some 1.37 million eligible Singaporeans will each be getting a one-off GST Voucher of up to S$200 this month, the Ministry of Finance (MOF) said on Wednesday (Nov 1).
The GST Voucher – Cash Special Payment, first announced during the Budget earlier this year, is aimed at helping lower-income households offset some expenses.
A Singaporean who is at least 21 years old and earning less than S$28,000 a year is eligible for the payouts, provided that the annual value of his or her home does not exceed S$21,000.
In all, some S$280 million will be given out through these one-off payouts.
For those who have already signed up for the GST Voucher or past government payout schemes, this comes on top of the payout of up to S$300 that they were given in August. They do not need to take further action to receive the latest payout.
Meanwhile, the ministry reminded eligible Singaporeans who have yet to sign up for the GST – Cash/Medisave and GST – 5-year Medisave top-up to do so by Dec 31.
They would have received earlier notifications, sent via an SMS or a letter in July, to inform them of this.
Reminder letters and SMS notifications will be sent out in the coming weeks, the ministry added.
They can sign up at www.gstvoucher.gov.sg or complete the sign-up form in the reminder letters before mailing it.
More details on the GST Voucher scheme can be found at www.gstvoucher.gov.sg.
Source: Today Online
GST Voucher: 730,000 less people get it?
http://leongszehian.com/?p=16889
Why has the number getting GST Cash vouchers apparently decreased?
I refer to the article “1.37 million Singaporeans to get one-off GST Voucher of up to $200 in November” (Straits Times, Nov 1).
It states that “About 1.37 million Singaporeans will get a one-off GST Voucher of up to $200 this month, the Ministry of Finance (MOF) announced on Wednesday (Nov 1).
The GST Voucher – Cash Special Payment, which was announced in Budget 2017, will help lower-income households with expenses.
Some $280 million will be disbursed by the Government for the payout.
This is on top of the regular GST Voucher given out in August, which saw those eligible receive up to $300.
Meanwhile, MOF also reminded Singaporeans eligible for the GST Voucher – Cash/Medisave and five-year Medisave top-up but have yet to sign up, to do so by Dec 31.”
Help pay GST?
I understand that the original purpose of the GST offset scheme was to help lower-income families pay for the GST when it was introduced.
For example, even a lower-income family of say two adults and two children, spending just $1,200 a month, would incur GST of $1.008 ($1,200 x 12 x 7 per cent) a year.
So, the maximum GST Voucher cash payment of $1,000 ($500 x 2 adults whose individual assessible income is less than $26,000, in this example), may only just cover the GST that they incur.
In a sense, those who spend more than $1,200 a month – may not get enough to offset their GST.
More help for lower-income in 2007?
When the GST rate was raised from 5% to 7% in July 2007, a household in the bottom 20% had to pay additional GST of $370 per year, but received an offset package of $910 per year, in addition to permanent benefits of $1,000 per year. (“Budget debate round-up speech“, Mar 2, 2011)
Less help now?
It’s GST Cash of up to a maximum of $500 per adult now.
As to the Medisave top-up for those age 58 and above , it can only be used for approved medical expenses and insurance premiums, and is thus not cash that can effectively offset GST expenditure.
So, after adjusting for inflation since 2007, are lower-income families arguably, effectively getting less now under the GST Voucher scheme, compared to the previous GST Offset Package?
2.1m dereased to 1.37m – get GST Cash voucher now?
In 2012, the media reported that 2.1 million Singaporeans would get GST vouchers (“2.1 million Singaporeans to receive GST Vouchers”, Asiaone, Jun 30, 2012).
So, why has the number getting GST Cash vouchers apparently decreased by 730,000 (2.1 million – 1.37 million) Singaporeans or 35 per cent, to 1.37 million now?
Leong Sze Hian
G possibly plotting to break its promise soon and elevate GST rates? Vouchers given out to mitigate the impact of ensuing terrible news?
Pimps and Prostitutes party has been given a mandate by the people themselves in the 2015 GE to bully each and everyone of us to their heart's desire, so suck it up. A chicken wing is better than.............nothing.