SANDWICHED MIDDLE-INCOME GROUP

SANDWICHED MIDDLE-INCOME GROUP: **

(Tax reliefs): **

27.

Ms Ellen Lee asked the Prime Minister and Minister for Finance whether there are any tax reliefs to help the sandwiched middle-income group that belongs to the generation whose parents practised birth control resulting in them having fewer or no siblings and having to take care of their aged parents and young children.

Mrs Lim Hwee Hua (for the Prime Minister and Minister for Finance): There are generous tax reliefs for taxpayers caring for their aged parents and young children.

A taxpayer may claim up to $8,000 in relief for maintaining each parent, depending on individual circumstances. Taxpayers who have fewer or no siblings are not disadvantaged. This is because only one child may claim parent relief in respect of one parent and the amount of relief a taxpayer can claim does not depend on the number of siblings he or she has.

Our tax system also provides support to those raising children. Including the Working Mother’s Child Relief, a taxpayer can claim up to $25,000 in tax relief per child. In addition, taxpayers are also granted Parenthood Tax Rebates of $10,000 for their second child and $20,000 for each of the third and fourth child thereafter.

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