Overview of Cess

On 15 Feb 2007, the Government announced during the Budget that Cess will be reduced to zero percent with effect from 1 Jul 2007.

Prior to the reduction, Cess was levied at the rate of 1% on all Cessable items sold by tourist hotels, tourist food establishments and tourist public houses. Singapore Tourism Board (STB) collects Cess  under Singapore Tourism (Cess Collection) Act. IRAS is the agent of STB in the administration and collection of Cess.

When Cess was levied at 1%, who needed to collect Cess?

Prior to the reduction of Cess to 0%, you would have been required to collect Cess if you were one of the following establishments:

1. Tourist Hotels

A tourist hotel is:

• Any premises registered as a hotel under the Hotel Acts, and
• Declared by the Minister in the Gazette to be a tourist hotel under the Singapore Tourism (Cess Collection) Act.
  

2. Tourist Food Establishments

A tourist food establishment is a place or a premise that is located within the gazetted hotel. The places or premises are used for sale or preparation of food (cooked and uncooked) and beverages for human consumption. 

3. Tourist Public Houses

Owners of the companies or establishments who hold any of the following liquor licence:

• Public House First Class Licence;

• Public House First Class (Extended) Licence;

• Public House First Class (Extended Tourist Hotel) Licence;

• Public House (Temporary) First Class License for more than 6 days; or

• Any public house licence declared by the Minister in the Gazette to be a tourist public house.

With effect from 1 Jul 2007, you do not need to collect Cess as the rate has been reduced to zero percent.