Tuesday, 26 September 2023

We are shifting our daily news to Gutzy.Asia Support us there!

Diluting the impact: How the impending S&CC increase waters down rebates meant for cushioning the 1% GST hike

It was reported that the People’s Action Party (PAP)-run town councils have announced that Service and Conservancy Charges (S&CC) will be increased over the next two years, impacting Housing Board (HDB) residents, commercial properties, and market and food stalls.

It was said that the decision was made in response to increase in energy prices, maintenance and manpower costs. The two-stage hike will begin on 1 July 2023, followed by a subsequent increase on 1 July 2024.

Monthly fees for HDB flats will rise by between S$0.70 to S$7.90 for the first increment and S$1 to S$9.10 for the second.

If we take an average, it will be roughly an increment of S$4.30 starting from 1 July and cumulatively S$9.30 from 1 July next year.

The charges will vary among PAP towns based on factors like the age and profile of estates, residents’ needs, and operating expenditures. Residents will be informed of the new rates by their respective PAP town councils.

Lim Biow Chuan, Coordinating Chairman for PAP town councils and Member of Parliament for Mountbatten SMC said that without the adjustment in S&CC rates, most PAP town councils were at risk of running a deficit and would have to dip into recent surpluses which are intended for the sinking funds of town councils.

Indeed, typically, PAP town councils hold large amounts of funds including surpluses. For example, in the case of Pasir Ris-Punggol Town Council, according to its FY 2021/22 Annual Report, it was holding S$178 million of funds at the end of 2022 or 7 percent more than the year before.

In 2021 it was holding S$166 million. Its funds included surpluses, sinking funds, life replacement funds and other project funds.

The announcement, which was made on 1 June, came less than 4 months after DPM Lawrence Wong in his mid-Feb Budget 2023 speech told everyone that the PAP government will be giving out rebates to HDB dwellers helping them to offset between 1.5 and 3.5 months of S&CC over 2023 which is part of the enhanced permanent GST Voucher scheme and Household Support Package announced at Budget 2023 to help Singaporeans tide over higher inflation and to cushion the impact of the GST hike.

Give then take back?

So, for dwellers living in 3 and 4-room HDB flats, they will be getting a rebate of 2.5 months of S&CC for this year.

According to a recent survey done by Dollars and Sense, dwellers living at a 3-room HDB flat are currently paying S&CC ranging from S$44.50 to S$48.00 a month, depending on the locality.

Hence, the total rebates 3-room HDB flat dwellers are getting back will be S$111.25 to S$120.00 this year or roughly about S$9.60 on average a month.

In summary, we can, however, conclude that 3-room HDB flat dwellers are getting rebates of roughly S$9.60 on average a month for this year while they will also be paying an increase of S$0.70 – 7.90 a month from 1 July this year and cumulatively S$1.70 – 17.00 from 1 July next year.

The extent of rebates, if any, that HDB dwellers will receive next year remains uncertain. This raises the question: what effect will the GST rebates have on HDB flat dwellers, especially considering the upcoming hike in S&CC?

Subscribe
Notify of
12 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Latest posts

Election surprises and certainties: Dissecting Tharman’s presidential win

47
In the 2023 Presidential Election, Mr. Tharman Shanmugaratnam secured a stunning 70.4% landslide victory, surprising many, including himself. Despite expectations that TKL would win the opposition votes, voters from both camps showed a preference for Tharman's charisma and perceived competency. As Singapore reflects on the outcome, questions arise about the election's fairness and the real implications of Tharman's dominant win.

Volunteer as a Polling and Counting Agent for Singapore’s 2023 Presidential Election

3
For the upcoming Singapore Presidential Election on 1st September, members of the civil society have spearheaded an initiative to strengthen our democratic fabric. We invite committed individuals to join us as Polling and Counting Agents, standing together for a transparent, fair, and just election. This vote counting exercise, organized by members of civil society, is not specifically in support of Mr Tan Kin Lian, a candidate in the upcoming Presidential Election. It's an exercise in active citizenry. Nonetheless, Mr Tan endorses this initiative, which hinges on his candidacy, championing transparency, and has given permission for the results to be shared publicly.

Reflections from the Centenary: The Legacy of LKY and Singapore’s Future

19
Gilbert Goh reflects on the LKY centenary event: an inspiring showcase of a leader's global legacy juxtaposed against current challenges, urging Singapore to continue its path of progress.

Lim Tean advocates for Tan Kin Lian: A visionary leader for Singapore’s Presidency

84
In his speech at Mr Tan Kin Lian's launch of his presidential bid, Mr Lim Tean passionately championed the need for a truly Independent President. Highlighting Mr Tan Kin Lian's unique credentials and genuine concern for the wellbeing of Singaporeans, the Peoples Voice leader emphasized the pressing challenges of rising living costs and job insecurities faced by the public. Mr Lim depicted Mr Tan Kin Lian as a beacon of hope for the nation, advocating for a leader who genuinely understands and represents the people’s aspirations.

Tan Jee Say endorses Tan Kin Lian for President: A courageous, genuine, and humble...

38
In advocating for a truly representative leader, Tan Jee Say underscored Tan Kin Lian's humility, courage, and genuine dedication. Highlighting the pressing need for restored public trust and effective independence, Tan Jee Say emphasized that Tan Kin Lian, as the 'People's President', would bring back hope to Singaporeans and champion true democracy

Tan Kin Lian’s pledge: Rekindling unity and charting a vigorous future for Singapore

17
In the press conference to announce his bid for the Singapore presidency, Tan Kin Lian emphasizes safeguarding Singapore's reserves and strengthening public service integrity. Drawing on his 30-year leadership at NTUC Income, he envisions a future with affordable living, accessible housing, and job stability, pledging collaboration with the government for a united nation.

Strengthening Singapore’s political foundations: A call to action by Leong Mun Wai on Singapore’s...

35
Leong Mun Wai urges Singaporeans to strengthen political checks and balances, emphasizing, 'The best is yet to be for Singapore if we dare to make the right decision in upcoming elections.

Trending posts