Debated in Parliament on 4 Aug 2026.
Ms Hazlina Abdul Halim asked the Prime Minister and Minister for Finance in light of recent adjustments to the Tote Board Enhanced Fundraising Programme (a) whether the Ministry has assessed the impact of these changes on charities, including both Institutions of a Public Character (IPCs) and non‑IPC charities; and (b) whether the Ministry will consider supporting affected charities by refunding GST incurred on charitable activities or extending GST Voucher-type support.
The question on the impact of adjustments to the Enhanced Fund-Raising (EFR) Programme on charities has been addressed by written reply to Question Nos 35 and 36 on the Order Paper for the 6 May 2026 Sitting. [Please refer to "Effect of Downward Revision to Enhanced Fundraising Programme's Fund Matching on Charities' Donation Revenues, Operating Budgets and Staffing Plans", Official Report, 6 May 2026, Vol 96, Issue 30, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]
In summary, in view of the trends in charitable giving and the Government's support measures, we do not expect the donations received, programming and operations of charities to be significantly affected by the EFR adjustments.
Our Goods and Services Tax (GST) is designed to be a simple and broad-based tax on most goods and services consumed locally, with minimal exemptions. This means that only GST-registered businesses can claim the GST incurred on their local consumption. Instead of having separate GST rules for charities, the Government provides support in other ways, such as direct grants for programming and operations, which can offset the GST cost of supported expenditures.
To further support charities through fostering a culture of giving, the Government also provides a 250% tax deduction for qualifying donations to Institutions of a Public Character and matching grant schemes for donations. We review our schemes regularly to ensure the charity sector is well supported.
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