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A tax write-off for insurance premiums will encourage higher uptake of health insurance amid growing pressure on Singapore’s healthcare system, according to global consultancy firm PwC.
According to PwC Singapore’s Budget Proposal 2019, the relief will allow more taxpayers to purchase health cover for themselves and their families to help with growing healthcare costs. The proposal also suggested that the tax deductions have a cap which could be scaled according to age, reported Singapore Business Review.
“Perhaps a cap of SG$500 per year could be set, to be claimed every other year and on an incurred basis,” PWC said in its report.
It also noted that there is currently no standalone tax relief for individuals on premiums paid on medical or health insurance policies. PwC proposed that the government allow for a tax deduction that is not linked to Central Provident Fund contributions, with a cap of SG$5,000.
Furthermore, PwC also proposed that the previously mentioned reliefs, as well as the Working Mother’s Child Relief, should be excluded from the SG$80,000 cap on personal income tax reliefs. This will have the effect of encouraging mothers to stay in the workforce, it said.
As for Singapore’s aging population, retiring professionals could act as mentors for younger workers, harnessing their extensive work experience and life knowledge.
“The government should consider co-funding their compensation with the start-up to attract them to join as accelerator mentors in identified sectors upon their retirement,” PwC said.
