The Singapore government robs Sichuan earthquake victims of RMB2.4 million? UPDATED

Top Singapore blogger Mr Wang has highlighted what he says is "immoral behaviour" on the part of his government for not waiving the 7% Goods and Services Tax (GST) off donation receipts for a live charity show on national television which raised S$6.85 million (approx. RMB34.25 million or US$4.02 million) for victims for the Sichuan earthquake:

7% of $6.85 million works out to $479,500. Last night, compassion and kindness led Singaporeans to donate $6,850,000 to help the earthquake victims in China. But out of all this money, the Singapore government will pocket almost half a million. For doing nothing, basically.

UPDATE: Mr Wang has removed his post, and has since clarified with Shanghaiist that the GST was levied on the cost of the phonecall and not the amount donated.