Water Conservancy Tax shouldn't include GST!!!
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WITH the increase in the goods and services tax (GST) rate, I have become more conscious about the cost of this tax. So when I received my latest utilities bill recently, I pored over it to see how GST is levied. Two issues bother me.
First, there is a Water Conservancy Tax of 30 per cent which is levied on the full cost of water consumed. By its name, I would have thought the purpose of this tax, and acceptably so, is to penalise consumers who use water excessively. However, the tax is levied on every dollar of water consumed regardless of the quantity used, even though a consumer's usage is well below the national average stated in the bill as is in my case. Hence it is no more than a disguised additional 30 per cent increase in the published water rate of $1.17 per cu m. Water is an essential item and conservancy from absolutely no usage is not an option. To serve the conservancy cause, shouldn't the tax kick in only if usage is excessive?
Second, the Water Conservancy Tax, which is by no stretch of imagination an item of goods or services, is also subject to GST. It is unreasonable as a matter of fundamental principle that a tax is imposed on a tax payment.
I asked SP Services, the service provider, about this and was told the charges are made on the instructions of the Ministry of Finance to whom I should refer my questions.
I am also concerned that there are other similar situations. We consumers are already burdened by a wide-
ranging escalation in cost of living, as well as indirect taxes, and should be spared from having to pay taxes on taxes.
Quek Soo Beng
extracted from straits time forum. -
If he calls up the ministry of finance, he'll be directed back to SP services lar.
Wah lau, the guy live singapore how long already still dunno how it works ar? -
i wonder which template they will be using....
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Not_our_problem.doc
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Arrows will fly, just watch.
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I notice this problem for quite sometime.However,i found the Water Conservation Tax does not subjected to GST.
But since the water usuage Fee is subjected to 30%-45% conservation Tax,it should not subjected to 7% GST again!
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Welcome to Singapore!Originally posted by Frogleg888:I notice this problem for quite sometime.However,i found the Water Conservation Tax does not subjected to GST.
But since the water usuage Fee is subjected to 30%-45% conservation Tax,it should not subjected to 7% GST again! 
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convenient oversight to double tax the people. KPKB with the authorities will become a wild goose chase.Originally posted by Frogleg888:I notice this problem for quite sometime.However,i found the Water Conservation Tax does not subjected to GST.
But since the water usuage Fee is subjected to 30%-45% conservation Tax,it should not subjected to 7% GST again! -
Tax the tax.
What a good way to earn more money. -
Observe and ye shall see more of such activities in Singapore. And yes shall knowth the truest extent of the wool over thine eyes.Originally posted by charlize:Tax the tax.
What a good way to earn more money. -
Why Water Conservation Tax attracts GST
MR QUEK Soo Beng ('Water Conservation Tax shouldn't include GST'; ST, July 9) suggested that the Water Conservation Tax (WCT) be charged only for excessive water usage and not be subject to GST.
The objective of the WCT is to reinforce the message that every drop of water is precious and to encourage all consumers to conserve water. To discourage excessive usage, a higher WCT of 45 per cent is charged on water usage exceeding 40 cu m per month.
GST is charged on the final value of any goods or services consumed in Singapore. As the WCT forms part of the total price payable for water consumption, it is also subject to GST. This is consistent with practices in other countries.
Low Yin Leng (Ms)
Deputy Director
(Social Programmes)
Ministry of Finance -
The reply is not addressing the the writer's points. I quote him.Originally posted by dragg:Why Water Conservation Tax attracts GST
MR QUEK Soo Beng ('Water Conservation Tax shouldn't include GST'; ST, July 9) suggested that the Water Conservation Tax (WCT) be charged only for excessive water usage and not be subject to GST.
The objective of the WCT is to reinforce the message that every drop of water is precious and to encourage all consumers to conserve water. To discourage excessive usage, a higher WCT of 45 per cent is charged on water usage exceeding 40 cu m per month.
GST is charged on the final value of any goods or services consumed in Singapore. As the WCT forms part of the total price payable for water consumption, it is also subject to GST. This is consistent with practices in other countries.
Low Yin Leng (Ms)
Deputy Director
(Social Programmes)
Ministry of Finance
"First, there is a Water Conservancy Tax of 30 per cent which is levied on the full cost of water consumed. By its name, I would have thought the purpose of this tax, and acceptably so, is to penalise consumers who use water excessively. However, the tax is levied on every dollar of water consumed regardless of the quantity used, even though a consumer's usage is well below the national average stated in the bill as is in my case. Hence it is no more than a disguised additional 30 per cent increase in the published water rate of $1.17 per cu m. Water is an essential item and conservancy from absolutely no usage is not an option. To serve the conservancy cause, shouldn't the tax kick in only if usage is excessive?"
His point is valid. Water is an essential item. On the other hand, why is the water tax not structured in such a way as to encourage convervation? But at a flat rate, regardless whether one is conservative or wasteful.
Now we know. If you are conservative, you are still taxed (at 30%). But if you are extremely wasteful (ie exceeding 40 cu m per month), you will be taxed even more (at 45%).
This is policy gone wrong, isn't it? I quote him on the second point.
"Second, the Water Conservancy Tax, which is by no stretch of imagination an item of goods or services, is also subject to GST. It is unreasonable as a matter of fundamental principle that a tax is imposed on a tax payment."
The writer's point is even more valid. He simply ask- why is a direct tax lavied on a direct tax?
From the reply, I quote "GST is charged on the final value of any goods or services consumed in Singapore."
We could have understand the govt's reasoning if the water conservative tax is an indrect tax. But it is not. Why are we paying 7% GST on top of 30-45% tax?
From this such incident, the ramtification GST increase is far greater than 7%, isn't it? -
hmm.. a tax on a tax..
i wonder which part of goods and services a tax is..
sure as hell ain't goods..
so, can someone explain to me how a tax is a service? -
These are the kind of policies which many people are angry about. Creative accounting to suit itself.
But if it has been making a sincere mistake - acknowledge it and not beat around the bush. -
To start with this consistency, which other countries charge WCT?Originally posted by dragg:Why Water Conservation Tax attracts GST
MR QUEK Soo Beng ('Water Conservation Tax shouldn't include GST'; ST, July 9) suggested that the Water Conservation Tax (WCT) be charged only for excessive water usage and not be subject to GST.
The objective of the WCT is to reinforce the message that every drop of water is precious and to encourage all consumers to conserve water. To discourage excessive usage, a higher WCT of 45 per cent is charged on water usage exceeding 40 cu m per month.
GST is charged on the final value of any goods or services consumed in Singapore. As the WCT forms part of the total price payable for water consumption, it is also subject to GST. This is consistent with practices in other countries.
Low Yin Leng (Ms)
Deputy Director
(Social Programmes)
Ministry of Finance -
do they charge tax on CESS and all that?
hmm.. what if they started to charge GST on GST? -
Reminds me of a ute advert on popular mechanics magazine "we put a turbocharger on our turbocharger".
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for goodness sake govt agencies pls stop comparing Singapore with some unknown countries in your replies.
Why the reply never mention profits $$$ GLC made from Singaporeans from the sales of water.
30% water tax is HARSH AND PENALISING by any measures which ever country the rely letter would want to compare. -
I know Canada gives rebate to residents who use less water. I think this, giving incentive rather than penalising, is a better way of encouraging saving but of course our govt wouldn't think so.Originally posted by rojak12:To start with this consistency, which other countries charge WCT? -
"Oh Singapore give you "rebate" also. If you use less than 40 cu m per month, you kanna 30% WCT instead of 45%" will be the reply.Originally posted by pearlie27:I know Canada gives rebate to residents who use less water. I think this, giving incentive rather than penalising, is a better way of encouraging saving but of course our govt wouldn't think so.
In fact, this suggestion of incentive is nothing new! It has been proposed before, but do you think it will be implemented? -
The letter ba , give u nice envalope and they is company paid stampsOriginally posted by the Bear:hmm.. a tax on a tax..
i wonder which part of goods and services a tax is..
sure as hell ain't goods..
so, can someone explain to me how a tax is a service?
and make u pay for it lor (i assume la) -
Tax the tax.
Haha, I had some amusement reading that.
Perhaps it should be renamed Goods, Services and Taxes Tax. GSTT. Haha.
Such is a monopoly. You don't have a choice. Just suck your thumb. Starhub Cable is a good example too. -
When we have choosen this group of ppl to govern our country, we need to pay respect and follow whatever they said.
If tomorrow they said, GST is increased to 10%, there will no objection voices. U Dare talk against the government, challenged the authorities, then be prepared to face the ISD detention ACT, where u may be held indefinetely without trial.
SO next time please open your eyes wide wide. If you want to stay here, be prepare to accept anything they said.
The water conservation tax has been here all the time, from the very first drop of water that comes out of your tap. Eventhough you may be using less water then the national level, you are still regarded you as a wastage of their water in their eyes..So don't grumble and talk about water conservation should only be applied after you have reached a certain quantity of usages. Just pay the additional 30-40% of water conservation taxes. And on top of that, pls pay another 7% for taking the time to address to ppl like you enquires.
It is call water conservation tax, if you dare talk somemore, we will just changed the name to water tax. Then it will just shut all of you up. HAHA.. -
I read today's ST forum page written by Karma Tsultrim Wangchuk,
"Is Water Conservation Tax Fair?Ask Iras.
I share the same sentiments on his last two paragraph,"I am not against paying any tax.But the tax system should be rational,consistent and just."
"I appeal to the Government to look into this matter(7% GST on WCT) and across the board.Paying 7 per cent tax on consumption expenses is already burdensome enough."