2. how does it help to overcome/ reduce the income inequality?

b) CPF (or HDB) Housing Grants are given to lower- and middle-income families to help make their home purchases more affordable. 

The grants will be fully credited into an applicant’s CPF Ordinary Account after flat booking, and be used to offset the purchase price of the flat, hence lowering the home loan amount required.

- cash helps with household expenses for necessities 

- medisave helps with medical expenses

- U-save gives them rebates on their utilities bills

- Household Support Package to provide support for daily essentials, it helps Singaporean families to manage cost of living pressures, by providing support for daily essentials – through utilities rebates, top-ups for children’s education and vouchers for use at heartland shops.

- Assurance Package for GST to cushion the impact of the planned GST increase, and enhancements to the permanent GST Voucher scheme to provide continuing help to defray the GST expenses of lower- to middle-income Singaporean households, beyond the transitional support covered by the Assurance Package

(b)

the GST voucher scheme gives help to lower- and middle-income singaporeans to offset part of their GST expenses to ensure that our GST does not disadvantage the lower−income and to help lower- and middle-income households with their expenses, in particular, what they pay in GST. 

furthermore, cutting the GST rate will benefit the rich more because the bulk of the GST is paid by those who are better off. They consume more of everything, not just luxury items, but basic necessities as well. It is therefore much better to collect the GST on essential goods from everyone, and use the resources to support the lower−income directly. Having said that, we already provide subsidies to directly offset GST on basic services, such as healthcare and education.