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The government will enhance its good and services tax voucher (GSTV) scheme - a move that will cost S$385 million - said Tharman Shanmugaratnam, Deputy Prime Minister and Finance Minister, on Monday.
The voucher is handed out to ensure that the GST is not a burden on the lower income.
The government will increase the cash amount of GSTV by S$50 across the board from this year. This means that those eligible will receive up to S$300 in cash under the GSTV. This will benefit 1.4 million Singaporeans.
Seniors aged 55 and above will also get a "seniors' bonus" this year. This will effectively double the GSTV that they usually receive, or up to S$600.
Those aged 65 and above, and living in HDB flats, will get an additional S$300 this year.
They will, therefore, get a total of up to S$900.