CPF

Chan Chun Sing: Govt Realises Businesses Will Face CPF Increase Pressure

Chan Chun Sing: Govt Realises Businesses Will Face CPF Increase Pressure

Trade and Industry Minister and one of the future leaders of the 4G government, Chan Chun Sing, says that the government realises the cost pressure the government themselves are putting on businesses, with the planned increases in the ages for re-employment and retirement, as well as Central Provident Fund (CPF) contribution rates for older workers.

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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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