TAX BREAKS AND LOWER MAID LEVY (Extension to singles who take care of aged parents and disabled siblings)

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TAX BREAKS AND LOWER MAID LEVY:

(Extension to singles who take care of aged parents and disabled siblings): 6.

Miss Penny Low asked the Prime Minister and Minister for Finance whether he will consider extending the tax breaks and lower maid levy to singles who are taking care of their aged parents or disabled siblings.

Mrs Lim Hwee Hua (for the Prime Minister and Minister for Finance): Sir, the tax breaks for taking care of aged parents or disabled siblings are already available to singles. Singles can also benefit from the lower maid levy from1st Augustthis year for taking care of elderly parents. The tax relief per aged parent aged 55 and above is $3,500 or $5,000, depending on whether the taxpayer is staying with his parent. It goes up to $6,500 or $8,000 if the parent is disabled. The tax relief is $3,500 for each physically or mentally disabled spouse, child or sibling that the taxpayer supports.

From 1st August 2004, the employer of a foreign maid will pay the lower foreign domestic worker levy of $250 per month instead of $345, if his elderly parent aged 65 and above stays with him.

Miss Penny Low (Pasir Ris-Punggol): Would the Minister of State consider extending this lower maid levy to singles who are taking care of parents or disabled siblings who are below 65 years old?

Mrs Lim Hwee Hua: Sir, allow me to clarify whyage 55 was used for the tax reliefand age 65 was used for the foreign worker concession.

Age 55 was used as the age cut-off forparent relief because when the parent relief was put in place many years ago, age 55 was the retirement age norm. However, for the discount on the maid

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levy, the Ministry of Manpower has explained that the foreign worker levy concession is not pegged to the retirement age of the elderly person. Instead, it is consistent with the definition of senior citizens used by the Ministry of Health to qualify forthe concession at polyclinics and for medical prescription fees. Therefore, any lowering of this age would be inconsistent with the application of the second guideline.

Miss Penny Low: Would the Minister of State agree that there is an increasing trend of singles taking care of aged parents and disabled siblings, and certainly there is a cost to that? For singles, especially those from the lower income family, working is going to be essential to bring back the bread and to take care of their family. Would the Minister of Stateconsider extending, first, the tax breaks and the maid levy to this group of people who are taking care of disabled and aged parents or siblings, and the additional two days off for singles who may be taking care of this group of people?

Mrs Lim Hwee Hua: Sir, the tax breaks and reliefs are really part of a holistic approach towards looking after the respective groups. The Ministry monitors and reviews these from time to time, and I will ask the Ministry to bear Miss Low's suggestions in mind at the next review.

Mr Steve Chia Kiah Hong (Non-Constituency Member): Sir, will the Minister of State also consider extending the tax breaks and lower maid levy for husbands to claim on behalf of the family and pass on the tax benefits to the wife when the wife sacrifices her own career and chooses the equally important role of a stay-at-home mum to take care of her children?

Mrs Lim Hwee Hua: Mr Speaker, Sir, I will ask the Ministry to consider the hon. Member's suggestion.