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Every Drop Of Water Is Precious

11 July 2007

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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.

2. 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.

3. 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
DEPUTY DIRECTOR (SOCIAL PROGRAMMES)
MINISTRY OF FINANCE

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