SINGAPORE: Members of Parliament have called for more measures to alleviate the impact of the rising cost of living, with one opposition MP calling for a reduction of Goods and Services Tax (GST).

The impact of inflation dominated much of the parliamentary debate on Budget 2011 on Monday.

Some MPs expressed concern that the savings of retirees would be eroded over time.

Opposition MP Low Thia Khiang suggested reducing the GST by two percentage points to 5 percent. He also called for a waiver of GST for basic necessities.

Mr Low said: "There is a need for a concerted effort to address the rising cost of living at the fundamental level, which is to control the price increase of essential items like food, transportation, education and health care.

"Without tackling the rising cost of living at the fundamental level, the election-year Growth Dividends will evaporate fast."

"The GST is at the centre of everything we consume," he noted.

But his suggestion was challenged by other MPs.

Christopher De Souza, MP for Holland-Bukit Timah GRC, said: "Who does the Workers' Party really want to help? High-income earners, we know, consume more and therefore pay higher GST. In that pool of tax collected, it gets redistributed to the lower-income earners.

"These are old issues. They've been ventilated, they've been discussed, they've been voted on and they've been implemented for the benefit of Singaporeans."

Separately, MPs felt that measures to help the elderly and caregivers could be enhanced. MP Amy Khor felt that the 8.7 percent of Budget 2011 allocated to healthcare was "inadequate", while Nominated MP Mildred Tan said that home care services could be given better support.

Some MPs asked if singles could also get tax breaks when they employ a foreign domestic worker.

Halimah Yacob, MP for Jurong GRC, said: "Under this (foreign maid levy relief) scheme, only married women are eligible."

Single or male taxpayers are not eligible for this relief.

"So, a married woman who has grown up children but who needs help to take care of her elderly sick parents can get this relief, which amounts to twice the foreign domestic worker levy paid in the previous year," noted Madam Halimah.

"But the poor single woman struggling on her own to take care of her sick, elderly parents and needs just as much, if not more support as she does not have a husband to support her, is not eligible for this relief. This is inconsistent and unfairly penalises singles who are filial and want to take care of their elderly parents at home."

MPs also turned their attention to Singapore's low fertility rate.

Some suggested ways to get singles hitched, while others wondered if building bigger HDB flats could encourage young couples to have more children.

These issues will get a more thorough airing over the next few days when MPs debate the budgets of the individual ministries.

channelnewsasia.com