In many countries, businesses that sell goods and services to the public are by law required to display the final prices, inclusive of all taxes and charges, to maintain transparency and allow customers to make informed choices.

Under the current regulations in Singapore, as long as a service charge is levied, restaurants and hotels are not required to display prices that are inclusive of goods and services tax (GST). According to the Inland Revenue Authority of Singapore, this is because these businesses may have "operational difficulties" in doing so.

This exemption then allows them to advertise prices that are later massively increased.

Since the 10 per cent service charge is largely an industry standard, I see no apparent operational issues to warrant continuing with this exemption. It is time to move to all-inclusive pricing at restaurants and hotels.

Restaurants and hotels could state that a 10 per cent service charge is included in the displayed prices, to avoid questions about tipping. Also, if needed, restaurants could have two price lists, one for in-house dining and one for takeaway (without a service charge).

The planned adjustment of the GST rate will be a great opportunity for such a move, which should be implemented slowly to allow businesses time to adapt. It is ultimately in the interest of all consumers.

Gil Simon Schneider

Source: https://www.straitstimes.com/opinion/forum/make-restaurants-and-hotels-show-final-prices-inclusive-of-gst