Changes To Singapore's GST Offset Package Utility Subsidies

by Mary Swire, Tax-News.com, Hong Kong

04 January 2010

Singapore’s Ministry of Finance has announced that about 800,000 Housing and Development Board (HDB) households will receive SGD106m (USD75m) in Utilities-Save (U-Save) rebates off their utility bills in 2010.

The U-Save rebates on utility bills were introduced in 2007 as part of the government’s SGD4bn 5 year offset package to help Singaporeans, especially those on low and middle-income households, with the increase in goods and services tax (GST). The U-Save rebates will cost the Government approximately SGD620m over the 2007-2011 fiscal years.

The first payout in 2010, amounting to SGD60m, will be made this month. Households will receive the second payout in July 2010.

1-room and 2-room households will get SGD200 of U-Save rebates this year, which will offset more than a third of their annual utility bills on average. 4-room households will receive SGD150 of U-Save rebates, which will offset 10% of their annual utility bills on average.

However, this year, changes are to be made to the U-Save rebates system to ensure that it remains aimed at Singaporeans. Over the last few years, it has been noted that there has been an increase in the number of Singaporean-owned HDB flats which are fully-sublet, including to non-citizen tenants.

From January this year, HDB flats which are fully sublet to non-citizens will no longer be eligible for U-Save rebates. This is similar to HDB flats which are owned by non-citizens, which are currently already not eligible for the rebates.

Recommended