Proposal for Review of Water Conservation Tax Structure for Potable Water Usage
- Leon Perera questioned the rationale behind the two-tier water conservation tax structure, the 40 cubic metre threshold, and proposed trials for a more progressive multi-tiered system.
- Grace Fu explained that the two-tier structure, in place since 2000, aims to discourage consumption, with 96% of households paying the lower tier and increasing numbers using under 40 cubic metres monthly.
- She stated that water pricing reflects scarcity and the government does not see a need for more tiers, while providing targeted assistance like GST U-Save rebates for lower-income households.