CPF SYSTEM ONLY BENEFITS THE RICH?

“If a rich man contributes S$100 to his Central Provident Fund (CPF) account, he could get up to S$22 in income tax relief. In comparison, a person drawing S$3,000 a month would only get S$2 in relief."

Pointing out these extremes in potential savings by different income segments, Singapore University of Social Science economist Walter Theseira said in a forum on Oct 20 that the Republic’s CPF contribution tax relief policy should be reformed to troubleshoot the “regressive nature of CPF contributions”, where those who earn less contribute a greater fraction of their income to society than high earners.

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