Pub Date: Jan 12, 1997
Pub: ST
Page: 1
Author: JULIEK
Day: Sunday
Headline: Taxman doesn't get richer with more taxes : Dr Hu
Corporation: Inland Revenue Authority of Singapore, Iras Related Stories:

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THE amount of tax revenue collected is only one of the criteria used to determine the bonuses of tax-collection staff, said Finance Minister Richard Hu yesterday.

He was responding to two letters written to The Straits Times Forum Page yesterday criticising the Inland Revenue Authority of Singapore's (Iras) system of rewarding its staff.

On Thursday, The Straits Times reported that the Iras had in place a flexible reward structure based on variable increments and performance bonuses which took into account the amount of tax revenue collected.

Dr Hu suggested that the letter writers might have misunderstood and thought the amount of tax collected was the Iras' main criterion for deciding rewards.

He was speaking to The Sunday Times after the launch of the Heartstrings Hongbao '97 at Chinatown Point where he was guest of honour.

The event is an annual one organised by the Community Chest to raise funds for more than 154,000 people in 50 charities assisted by the National Council of Social Service.

In the morning, he was the guest of honour at the official opening of Revenue House.

Referring to the letters, Dr Hu, who is an MP for Kreta Ayer-Tanglin GRC, said: "I don't think you should read too much into it."

The Iras does not set the tax rates, he pointed out.

"Fixing of tax rates is done by the Ministry of Finance. The Iras is only the implementor.

"So the suggestion that because it is based on the amount collected, and would encourage them to increase taxes is absolute nonsense."

He added that tying rewards for staff, in a small way, to the amount of tax collected was simply to encourage efficiency.

When asked if this criterion should be used at all, he said: "I think it is no harm, provided it is not the main criterion.

"Each organisation will have to assess what is important in the performance criteria."

On the concern that Iras staff may harbour a silent wish for more taxes to be imposed, he said: "If that's the case, then they are going to be in trouble as far as I am concerned.

"Their main job is to try to help the public, not make it more difficult for them."

Besides, if anyone is unhappy with his tax bill, he could bring his case to the tax department's Board of Appeal, he said.