Rising healthcare costs must be addressed.
Tax experts are urging policymakers to consider providing tax deductions for individuals who are paying for health-related insurance policies, in a bid to provide enhanced support for rising healthcare costs.
“Allowing a tax deduction that is not tied to CPF contributions, subject to a cap of S$5,000, for premiums paid for medical-related insurance by individuals for themselves or their family members will encourage taxpayers to be more responsible for the health and well-being of themselves and their families,” said Wu Soo Mee, Partner, People Advisory Services – Mobility (Tax), Ernst & Young Solutions LLP.
Wu added that enabling a tax write-off for health insurance premiums also offer taxpayers greater access to preventive and emergency healthcare. Currently, there is no tax relief available to individuals for premiums paid on medical-related or health insurance policies.
Jill Lim, Partner and Head of Global Employer Services at Deloitte Singapore and Southeast Asia, added that although the Government has already taken steps to address rising healthcare costs—such as by introducing the Medishield Life scheme and building more childcare centres—perhaps support can be provided from a tax perspective as well.
“Consideration should be given to allow tax relief to individuals for medical insurance premiums paid for himself/herself, spouse, dependent children and elderly parents. This would help to promote individual responsibility for healthcare needs and alleviate the financial burden on individuals in view of the rising medical and healthcare costs in Singapore,” she said.
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