INCOME TAX COLLECTED FROM SALARY AND WAGE EARNERS IN 1960 AND 1961

Mr Tee Kim Leng asked the Minister for Finance what was the total amount of income tax collected from salary and wage earners in 1960 and 1961, respectively.

Dr Goh Keng Swee: The salary and wage earners are assessed on the aggregate of all income from all sources including salary and wages, business profits, rents, dividends, etc. As tax is paid on this aggregate on' a sliding scale, it is not possible to allocate with precision the portion of the tax collected from salaries and wages.

It is therefore regretted that the information asked for by the Member for Pasir Panjang is not available.

Mr Tee Kim Leng: (In Mandarin): Mr Speaker, has the Minister noted that on the 1st of March this year, an editorial in the Sin Chew Jit Poh -

Mr Speaker: Order. I think it can be said that the Minister is not responsible for whatever is said in the Sin Chew Jit Poh. Therefore, no reference can be made to any article in any newspapers; not at Question Time.

Mr Ong Chang Sam (Choa Chu Kang): (In Mandarin): Can the Minister for Finance give us the figures later on for the information of Members of the House?

Dr Goh Keng Swee: I have already explained that, in the nature of things, it is not possible to apportion tax arising from different sources because the whole lot is lumped in one total. If the Member is still unconvinced about this. I could explain to him in more detail the mechanics of the operation.

Mr David Marshall: Mr Speaker, Sir, would the Minister note that what `they are seeking is information not in respect of salaries and wages, but information as to income tax from salary and wage earners. The question is: are there such classifications, and can the Minister say what is the total tax collected from wage earners; what is the total tax collected from salaried persons; whether in respect of salaries and wages or salaries, wages plus? He has not got the question.

Dr Goh Keng Swee: The question is quite clear. They want to know the tax paid from salaries and wages.

Mr David Marshall: From salary and wage earners.

Dr Goh Keng Swee: My recollection of the statistical appendices attached to the Annual Report of the Income Tax Department is that classification along these lines is not available. The Income Tax Department does classify assessable income according to source, that is to say, income from employment, business profits, rents, dividends, and so on. That information is available and it might give a rough order of magnitude of tax accruing from salary and wage earners. For instance, in the year of assessment 1959, the total income assessable to tax was $543 million of which $250 million was derived from employment. So roughly rather less than half the total assessable income took the form of salaries and wages.

Mr Tee Kim Leng: (In Mandarin): Has the Minister any intention of reducing or increasing the personal allowance?

Mr Speaker: Does the Minister wish to answer that?

Dr Goh Keng Swee: No, I do not think I will answer that question.