Tax Payment on NS Excellence Award

Mr Louis Ng Kok Kwang asked the Minister for Finance what is the rationale behind the payment of tax by National Servicemen on the NS Excellence Award which they obtain for good performance during in-camp training.

The NS Excellence Award (NSEA) is accorded to Operationally Ready National Servicemen (NSmen) who have performed in the top 30% of their cohort in in-camp training and courses during their Operationally Ready National Service. As it is an incentive to reward good performance during NS, the NSEA, like other income from an individual's good performance, is taxable.

However, where it is a gift from the Government to show appreciation to NSmen in general and is not a reward for good performance, the gift will not be taxable. An example is the NS50 Recognition Package.

To support and in recognition of their service to the nation, NSmen are eligible for a tax relief of between $1,500 and $5,000.