10 Things about the GST Voucher

1. What is GST?
The Goods and Services Tax (GST) is a tax on domestic consumption. The tax is paid when money is spent on goods or services, including imports. It is a tax on the value added at every stage of the production and distribution chain.
2. What is the GST Voucher, and why is the Government giving Singaporeans the GST Voucher?
Taken as a whole, the GST is part and parcel of a progressive fiscal system, where the lower−income group receive far more benefits compared to the taxes they pay. This is because we have introduced programmes such as Workfare and enhanced our subsidies to help lower-income families. On its own however, the GST is a flat tax, and therefore regressive, taking up more of the pay of those with low incomes.

To ensure that our GST does not disadvantage the lower−income, the Government introduced a permanent GST Voucher in Budget 2012. It is a permanent Government transfer that is meant to help lower- and middle-income households with their expenses, in particular, what they pay in GST. The GST Voucher will be given in three components - Cash, Medisave and U-Save.
3. Why not exempt basic necessities from GST, or reduce the GST rate instead?
The GST Voucher is the most effective way of supporting the lower-and middle-income, as it provides direct offsets to help with household expenses. To exempt certain items from GST, or cut the GST rates, would be counterproductive.

The experience of many countries and relevant studies also show that a multi−rate GST system subsidises the consumption of the higher-income groups more; distorts consumption and production, and raises businesses costs significantly, which are then passed on to consumers.

Cutting the GST rate will benefit the rich more. Even when we look at basic necessities, the bulk of the GST is paid by those who are better off. They consume more of everything, not just luxury items, but basic necessities as well. It is therefore much better to collect the GST on essential goods from everyone, and use the resources to support the lower−income directly. Having said that, we already provide subsidies to directly offset GST on basic services, such as healthcare and education.
4. How can I receive my GST Voucher?
The GST Voucher − Cash will be issued to you as a cheque, or credited to your bank account that was used for the last cash payout from the Government (e.g. Workfare Income Supplement or Growth Dividend). If the bank account is closed, a cheque will be mailed to you at your NRIC address.

The GST Voucher − Medisave will be credited to your CPF Medisave Account.
The GST Voucher − U-Save will be used to offset your household’s utilities bills.
5. Who is eligible for the GST Voucher?
The eligibility for the GST Voucher depends on the Annual Value of your home, Assessable Income and your Age.
6. How much GST Voucher will I receive?
Find out if you meet the criteria for the GST Voucher below. You may also click on the headers to find out more about the various GST Voucher components.

GST Voucher − Cash
Assessable Income for
Year of Assessment 2013
Annual Value of Home as at 31 Dec 2013
Up to $13,000
$13,001 to $21,000
Up to $26,000
$250
$100
Note: You should not own more than one property.

GST Voucher − Medisave
Age
Annual Value of Home as at 31 Dec 2013
Up to $13,000
$13,001 to $21,000
65-74
$250
$150
75-84
$350
$250
85 and above
$450
$350
Note: You should not own more than one property.

GST Voucher − U-Save
Flat Type
Jul 2014
Oct 2014
Jan 2015
Apr 2015
Total Amount Per Year
1- and 2-room
$65
$65
$65
$65
$260
3-Room
$60
$60
$60
$60
$240
4-Room
$55
$55
$55
$55
$220
5-Room
$50
$50
$50
$50
$200
Executive
$45
$45
$45
$45
$180
Note: Your household should not own more than one property.
7. When will the Government notify me if I qualify for the GST Voucher?
All Singaporeans who are eligible for the GST Voucher will be notified by post in July each year.
8. When will I receive my GST Voucher?
You will receive your GST Voucher − Cash and/or Medisave in August each year that you qualify. If your household qualifies, you will receive your GST Voucher − U-Save in January, April, July and October each year.
9. Do I need to sign up for my GST Voucher?
Most Singaporeans do not need to sign up for their GST Voucher.

You only need to sign up for your 2014 GST Voucher − Cash and/or Medisave if you have not previously signed up for a Government payout (e.g. the 2012/2013 GST Voucher, Growth Dividend or GST Credits). You can sign up in one of the following ways:

(i) Online at the GST Voucher website (www.gstvoucher.gov.sg); or
(ii) Hardcopy sign-up forms (can be picked up from CPF Service Centres, Community Centres/Clubs and Community Development Councils).

Sign-up for the 2014 GST Voucher begins on 1 July 2014. The deadline to sign up is 31 December 2014. No sign-up is required for GST Voucher − U-Save.
10. Who can I contact for more information on the GST Voucher?
For more information on the GST Voucher − Cash and Medisave, you can email gstvoucher@cpf.gov.sg or call 1800 2222 888 (Mon - Fri: 8am - 5:30pm).
For more information on the GST Voucher − U-Save, you can email spservices@singaporepower.com.sg or call 6671 7117 (Mon - Fri: 8:30am - 5:30pm).