GST COMPENSATION
How come I'm getting only $100?
About 36,000 S'poreans get less than they should
Ministry says mix-up will be sorted out
By Alvin Chiang
June 13, 2007
SOME 36,000 Singaporeans may find themselves getting fewer goods
and services tax (GST) credits than they should.
GST goes up to 7 per cent, from 5 per cent, next month.
The reason: A delay in getting up-to-date information on their
income and property value.
This resulted in most of them being given the minimum $100 under
the offset package.
But the Ministry of Finance told The New Paper last Friday that
those affected should not be unduly worried because the difference
will be corrected in due course.
The ministry noted that the payment 'shortfall' came about because
information on residents' annual income and the annual value of the
property they live in was not finalised by 21 Mar.
It estimated that about 1.5 per cent of the 2.4 million people
eligible for GST credits are affected.
This works out to about 36,000 people.
Until information on their data is finalised, they will be paid the
minimum $100 next month.
Madam Y L Lim, 58, is one of those affected.
Her husband will receive $400 next month, but she was told she will
get only the minimum $100.
She lives with her 65-year-old husband in a four-room Hougang HDB
flat.
Her daughter, Ms Jane Chua, called up the GST offset package
hotline to find out the reason for the discrepancy.
Ms Chua, 31, said she was told that her mother's annual income was
incorrectly filed as more than $100,000.
But she pointed out then that a mistake could have occurred because
Madam Lim used to work as a factory operator, earning slightly more
than $1,000 a month.
Not only that, she stopped working early last year.
A check with the Finance Ministry confirmed that Madam Lim was
indeed sent a letter telling her she was eligible for $100 worth of
GST credits.
INCOME NOT FINALISED
The ministry said MadamLim's GST credits were placed at only $100
initially because her annual income had not been finalised by 21
Mar.
A spokesman said: 'In order to send out the notification letters to
2.4 million eligible Singaporeans by 15 May, the CPF Board needs
their annual property value and annual income information by 21 Mar
to determine the amount of GST credits they will receive.
'However, there were a small number of Singaporeans like Madam Lim
whose annual income had not been finalised by 21 Mar, either
because they had not filed their 2006 income tax returns or because
Iras was still in the process of finalising their income tax
assessment.'
GST credits will be given out by the Government over four years to
help Singaporeans cope with next month's 2 per cent increase in GST
- up from the current 5 per cent.
The amount of credit issued to each person depends on the person's
income and the value of his or her property.
The annual income is based on the income tax submission last year,
based on income earned in 2005.
The value of credits given over four years varies between $100 and
$1,000.
Those who have yet to for file last year's income tax are advised
to do so quickly so they can be paid the right amount of GST
credits.
In Madam Lim's case, information on her income has since been
updated, the Finance Ministry spokesman said.
So the GST credits she is eligible for will be adjusted
accordingly.
The spokesman said: 'To date, almost all taxpayers who have
submitted their returns have had their annual income finalised and
will have their GST credits adjusted accordingly.
NEW LETTERS
'The CPF Board will be sending out letters by 15 Jun to inform all
those who were given provisional allotments and who now qualify for
a higher amount based on their finalised annual income assessment,
of their revised allotments.
'Those cases whose annual incomes have not been finalised are
mainly cases who have not filed their returns.'
When told of the Ministry's explanation, Ms Chua said her mother
had already filed last year's income tax.
For more information on GST credits, go to
www.gstoffset.gov.sg
