TAX RELIEF FOR PROVIDING FINANCIAL CARE FOR SIBLINGS

The following Question stood in the name of Mr Heng Chiang Meng -

Mr Heng Chiang Meng: To ask the Minister for Finance whether he will consider giving tax relief to persons providing financial care for their younger siblings in situations where their parents are unable to do so.

Dr Ho Tat Kin: Question No. 9, Sir.

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Speaker, Sir, the Member for Jalan Kayu will no doubt be already aware that our income tax system is a progressive one. Reliefs, though necessary, are by its very nature regressive. Expanding on our present system of dependants' relief would merely allow taxpayers with higher assessable incomes to benefit more in comparison to the lower income groups. I do not therefore propose to consider further revisions to our present system of dependants' relief.

A general reduction in our individual tax rates is a more equitable one. The Government has over the years sought to reduce the burden of the individual taxpayer. Our tax rates have been reduced five times during the Years of Assessment 1978, 1980, 1982, 1985 and 1987. The complementary policy of granting tax rebates has been practised from Assessment Year 1984.