TAX RELIEF FOR PARENTS OF HANDICAPPED CHILDREN

Mr Lau Ping Sum asked the Minister for Finance whether the income tax relief for parents of handicapped children will be increased.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Deputy Speaker, Sir, parents of handicapped children do get more relief than parents of non-handicapped children. Relief for non-handicapped children is given only up to the age of 16 or, if above 16, when they are receiving full-time education. Relief for handicapped children is given regardless of age, even if the handicapped child is employed provided his income is not more than $750.

Parents of handicapped children are also eligible for the incentives recently announced to encourage procreation. Increases in tax relief for handicapped children are not contemplated at this time.

Government is also supportive of the efforts to care for handicapped children. Donations to the institutions which provide needed services to handicapped persons are also tax deductible.

Mr Heng Chiang Meng (Jalan Kayu): Sir, may I ask the Minister whether he would consider giving tax relief for those persons providing financial care for their younger siblings, in situations where the parents are deceased or are in no position to take care of their children. Sir, I am specifically referring to cases where relief would have been allowed for the parents had they been in a position to provide financial care for their children.

Dr Richard Hu Tsu Tau: Sir, for the Member's information, there is an existing provision whereby brothers and sisters of handicapped children living in the same premises are allowed to claim deduction if the parents of the children are unable to do so.