SINGAPORE - To help alleviate the rising cost of living, residents in Singapore will receive a 50 per cent personal income tax rebate for income earned in the past year.

Deputy Prime Minister Lawrence Wong, who is also Finance Minister, said the rebate will be capped at $200 so that the benefit will go mostly to middle-income workers.

A similar income tax rebate was last announced in Budget 2019 when Singapore was commemorating the 200th anniversary of Sir Stamford Raffles’ arrival here. Then Finance Minister Heng Swee Keat said the rebate was part of the Government’s way of sharing revenue surpluses with Singaporeans.

The measure in Budget 2024 – a largely balanced budget which envisages a small surplus – will cost the Government about $350 million, said DPM Wong.

The Government will also increase the annual income threshold for dependant-related tax reliefs from $4,000 to $8,000.

DPM Wong said the decision was made in the light of feedback received from the public, tax practitioners and labour MPs.

Experts said gains in wages over the past several years have pushed many dependants past the earlier income threshold. But the recent surge in the cost of living means the reliefs are still much needed.