INCOME TAX RELIEFS FOR CHILDREN

Mr Lim Cheng Lock asked the Minister for Finance the reasons for the continued liberal income tax reliefs in respect of children up to as many as five, and if this is not inconsistent with the Government's policy on family planning.

Dr Goh Keng Swee: Sir, the policy is neither liberal nor inconsistent with Government's encouragement of family planning.

Originally, relief was given for up to nine children and the limit was reduced to five in 1965. Further reduction in the number of children entitled to relief will not improve matters. What is a matter for concern is whether those whose incomes are below the taxable range exercise due care in limiting their family size to what they can afford to maintain at a decent standard. Experience in other societies indicates that it is the poorest families who are most reluctant to limit family size.