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Originally Posted by coldwarmhot
Re thread: [Utility tax] Is tax on tax equitable?
I agree with BicCherry that GST is collected once and not multiple times. The total cost to consumer is 7% as of now. However "Tax on Tax" is not uncommon. There are many such examples in Singapore and it happens in other countries as well. |
Anyhow, as I'd previously mentioned, and using the photo of a Utility bill (Aug2012) as example, the final effect of the 30% water conservation tax (WCT) plus GST(7%) is a final WCT payable of 32.1% (i.e. 30% X 1.07= 32.1%). So there is no difference whether the 32.1% is derived as 32.1% (GST zero rated) or as 30% plus another 2.1% (GST) added- conceptually different but nominally the same amount payable eventually. A bit of mathematical acrobatics- that's all.
