Foreigners speak out against proposed National Defence tax on them

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In a note posted on his Facebook (FB) page, Member of Parliament (MP) Hri Kumar wrote that he intends to propose the tax in the upcoming Budget debates next week.

Called the National Defence Duty Tax, its purpose is to “address a current imbalance which currently exists” of Singaporeans who sacrifice a “significant economic cost” by doing two years of National Service (NS), versus foreigners and PRs who do not.

His argument is since non-Singaporeans benefit from the security which a strong armed forces provides, they should pay a duty, “a financial contribution to the protection and preservation of their (Singaporean) lives, families, jobs, investments and properties.”

SCEPTICISM OVER TAX

Many foreigners and PRs who inSing interviewed expressed scepticism over the intent of the tax.

Advertising strategist Felix Pels, a 30-year-old Australian, says that the tax is trying to deflect attention away from the “current unrest” over the government’s recently released Population White Paper which states that Singapore could have 6.9 million people by 2030.

“(It is) attempting to 'punish' non-citizens…adding a tax does nothing to address the legitimate questions.”

Marcelino Jr, who works as a senior manager with the Singapore Sports Council, agrees that the tax goes against current government efforts to integrate new citizens. He also criticises one of Hri Kumar’s points that low wage Indian workers be left out of the tax equation, as being unfair.

“If the tax is meant to offset the per-unit cost of security to each person in Singapore, then it has to be fair across the board. That means everyone foreign including foreign domestic workers. It shouldn't matter whether (they are) skilled, unskilled or professional,” the 43-year-old Filipino said.

LOW TAXES IN SINGAPORE

However many foreigners and PRs interviewed admit that the current taxes they have to pay in Singapore are low.

This is not the case for Ted Fordney who works as a vice president for Neptune Orient Lines. The 56-year-old says that this additional tax will add to the already high taxation United States (US) citizens have to pay.

“As a US citizen, I pay US and Singapore taxes. The tax equalisation terms I was given are such that my company subsidises the difference so that I do not have to endure double taxation. However, this additional tax might push my employer to discontinue their expatriate program, or their tax coverage,” said Fordney, who spent eight years in Singapore before heading back to the United States in 2010.

A Canadian marketing executive, who only gave his name as “Kelvin”, has a different perspective on the situation.

He says that, having lived in four different countries, away from his home country of Canada, citizens have every right to expect priority over non-citizens in all matters of policy planning.

“The decisions on how that country is run should be made by its citizens and we (foreigners) are guests here,” he said, adding that he has lived in Singapore for 13 years.

Former nominated MP and lawyer Siew Kum Hong wrote in his blog on 15 February that the tax only approaches the cost and burden of NS in economic and not real world terms.

“If we want to make up for the cost and burden of defending the country, we should give those who have served NS even more benefits than they receive today. More, much more than the tax relief and the SAFRA (Singapore Armed Forces Reservists Association) membership,” he wrote.

CLARIFICATIONS AND RESPONSES

The online debate over the proposed tax has prompted Hri Kumar to make clarifications and responses to individual FB users on his Facebook page.

In his latest post put up on Saturday, he reiterates his stance that there is a need to ensure that non-Singaporeans who come here to work do not see Singapore as a purely economic opportunity and that they integrate with the rest of Singapore society.

He wrote this in response to Facebook users who expressed reservations that the time spent for National Service can be “paid off” with a tax.