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Medisave a big burden for the low-income

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  • sg_review@yahoogroups.com
    This message from Sammyboy s Alfresco Coffee Shop™ on DelphiForums.com was forwarded to you Latest Medisave policy reflects the growing divide between
    Message 1 of 1 , Sep 24, 2004
      This message from Sammyboy's Alfresco Coffee Shop� on DelphiForums.com was forwarded to you

      Latest Medisave policy reflects the growing divide between million dollar
      ministers and the man on the street. A million dollar minister will not be able
      to relate to the daily needs and constraints of the average wage earner.

      You can view it in the context of the entire discussion by going to:

      From: FeiHK 21-Sep 05:33
      To: QXP 2 of 27

      55775.2 in reply to 55775.1

      How can million-dollar ministers and highly paid scholars feel the pain of the self-employed? All they can feel "in their bones" are the statistical numbers concocted by their equally high pay civil servants that the economy has turned around and it is time for them to increase their own salaries. To do that, they need more money. So here comes a series of measures like pay-as-you-earn, use cash-card to pay upfront for utilities, bring you to court if you fail to pay medisave in time, etc.

      All such measures show how desperate the govt is to milk more from the peasants. It will really be stupid of those peasants if they don't do something drastic this coming election.


      Published September 21, 2004


      Medisave a big burden for the low-income

      I REFER to the article 'Medisave: CPF cracks whip on self-employed' (BT, Sept 17).

      Self-employed people who earn more than $6,000 a year have to make Medisave contributions of up to 8 per cent. So a person who earns $6,001 has $460 a month to live on after paying Medisave.

      About 20,000 households are said to be more than three months behind on their HDB mortgage repayments or utility bills. And the number of households three months or more in arrears on mortgage repayments reportedly rose almost 15 per cent from 2002 to 2003.

      Pay-as-you-use meters will be introduced soon to make sure 'poorer' families don't have their electricity cut off. And about 15,000 households are said to be unable to pay their children's school fees.
      Is it any wonder that if can't pay your power bill or your children's school fees, you can't pay your Medisave either?

      The economic crisis, 9/11, Sars and stubbornly high unemployment have made it hard for some self-employed people to pay Medisave. On the other hand, Medisave contribution rates have increased from 3 per cent in 1992 to 8 per cent now for those aged 45 and over.

      For self-employed people to renew their licence, evidence of Medisave contributions must be produced. So chances are that some people may have had to give up their trade and look for alternative work because they were unable to pay Medisave.

      Before 2003, those who had not previously been issued a Notice of Assessment/Non-tax advice from Iras had to contribute Medisave based on an assumed income of $6,000 a year. But this was raised 50 per cent to $9,000 in 2003 at the height of the economic downturn, increasing the burden on some self-employed people.

      With such people already finding it hard to get by, should we be adding to their stress by threatening to take them to court?

      Leong Sze Hian

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