We refer to the letter “要求洗肾豁免消费税” (18 Jul 2013) by 林惠乾.

The majority of Singaporeans do not pay GST on their medical charges, because the Government has since 2012 been absorbing GST for all polyclinic and subsidised patients. This includes subsidised patients in community-run dialysis centres.

The GST system is otherwise broad-based with minimal exemptions. This is so as to keep our GST rate low, ensure that the system stays simple and avoid increasing compliance costs for companies which will have to be passed on to consumers. This is why we do not absorb GST on medical fees in general, beyond those paid by subsidised patients.

However, support for lower- and middle-income Singaporeans is also provided through the GST Voucher scheme, which helps them with their medical costs and household expenses. We are glad that Mr Lin’s family has benefited from this scheme. Further, the Government is reviewing the overall system of healthcare financing to ensure that lower- and middle-income Singaporeans can afford essential treatments. We thank Mr Lin for his useful feedback.