Our water utility bill contains a Sanitary Appliance Fee, a Waterborne Fee and a Water Conservation Tax.

The PUB describes the first two fees as levies to offset the cost of treating used water and for operating and maintaining the public sewerage system. Both charges are tax contributions to Singapore’s used water system. The Water Conservation Tax is charged for the use of water. It is levied to reinforce the importance of conserving water.

It is clear that the three charges are deemed as taxes. Notwithstanding that, the Goods and Services Tax is imposed on these levies — effectively a tax on tax. This may be technically legal, but the important question for consumers is whether it is equitable.