<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Water tax at odds with pro-family policies
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->MANY consumers will agree with national water agency PUB's acknowledgement ('Need for water conservation tax', July11) of Mr Paul Chan's view ('Shouldn't we pay less for consuming water?', July 8) that Singaporeans have been conscientious and supportive of water conservation measures.
Few will disagree with the agency's caution about the scarcity of water and need to conserve it as a precious resource.
But the issue raised by Mr Chan, which the PUB did not address, was whether the water conservation tax is out of date. Just as estate duty has been abolished, the water conservation tax should be scrapped for the following reasons:
The tax is at a very high rate of 30 per cent. In addition, the goods and services tax (GST) at 7 per cent is imposed over and above the water conservation tax. Indirectly, the Government collects additional GST as a result of the water conservation tax.
The water conservation tax is also at odds with two key public policies: encouraging families to have more children and encouraging adult children to support their elderly parents.
The water conservation tax seems to penalise those who have more children and who support their aged parents as more people in a household results in more water consumption.
When the GST was introduced, it was marketed as a fairer tax because the more you consume, the more tax you pay. So, do we still need a water conservation tax? It is time that the tax is reviewed.
Manmohan Singh
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->MANY consumers will agree with national water agency PUB's acknowledgement ('Need for water conservation tax', July11) of Mr Paul Chan's view ('Shouldn't we pay less for consuming water?', July 8) that Singaporeans have been conscientious and supportive of water conservation measures.
Few will disagree with the agency's caution about the scarcity of water and need to conserve it as a precious resource.
But the issue raised by Mr Chan, which the PUB did not address, was whether the water conservation tax is out of date. Just as estate duty has been abolished, the water conservation tax should be scrapped for the following reasons:
The tax is at a very high rate of 30 per cent. In addition, the goods and services tax (GST) at 7 per cent is imposed over and above the water conservation tax. Indirectly, the Government collects additional GST as a result of the water conservation tax.
The water conservation tax is also at odds with two key public policies: encouraging families to have more children and encouraging adult children to support their elderly parents.
The water conservation tax seems to penalise those who have more children and who support their aged parents as more people in a household results in more water consumption.
When the GST was introduced, it was marketed as a fairer tax because the more you consume, the more tax you pay. So, do we still need a water conservation tax? It is time that the tax is reviewed.
Manmohan Singh