10 Things about the GST Voucher

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.

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 hurt 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.

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.

If you are eligible, your GST Voucher may be in the form of cash, a top-up to your CPF Medisave Account, and/or a U-Save rebate. 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. 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. There is no need for a physical redemption of your GST Voucher.

The eligibility for the GST Voucher depends on the Annual Value of your home, Assessable Income and your Age.

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
Note: You should not own more than one property.

GST Voucher − Medisave
Note: You should not own more than one property.

GST Voucher − U-Save
Note: Your household should not own more than one property.

All Singaporeans who are eligible for the GST Voucher will be notified by post in July each year.

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 and July each year.

Most Singaporeans do not need to sign up for their GST Voucher.

You only need to sign up for your 2013 GST Voucher − Cash and/or Medisave if you have not previously signed up for a Government payout (e.g. the GST Voucher in 2012, Growth Dividend or GST Credits). The Government will send you a letter in July each year with details on how you can sign up.
No sign-up is required for GST Voucher − U−Save.

Please note that sign-up for the 2012 GST Voucher is now closed.
You may sign up for the 2013 GST Voucher via this website or on hardcopy forms from 1 July 2013 onwards.

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, Eve of PH weekdays: 8:30am - 12:30pm).