Singapore’s Tax Revenue Sees 17% Surge, Crossing S$80 Billion
Singapore’s tax revenue hit a new high in the 2023/2024 financial year, collecting a whopping S$80.3 billion (US$61.4 billion) – marking a 17% increase from the previous year. This jump in tax collection reflects the country’s solid economic performance and rising wages in 2022, according to the Inland Revenue Authority of Singapore (IRAS).
This tax revenue made up nearly 78% of the government’s operating budget and contributed 11.9% to the country’s total GDP. But where does all this money go? IRAS explained that the taxes collected help fund essential public services, fuel economic growth, improve the living environment, and support social programs that benefit Singaporeans across the board.
Tax Compliance & Enforcement
While most Singaporeans pay their taxes on time, IRAS takes a firm stance on those who don’t. For the small minority who avoid paying, IRAS has been cracking down. Over the last financial year, IRAS audited and investigated close to 9,600 cases, recovering a substantial S$857 million in unpaid taxes and penalties. Thankfully, the arrears rate for GST, income tax, and property tax remained low at just 0.64%.
A Breakdown of the Tax Revenue
- Corporate Income Tax: Leading the charge, corporate income tax made up 36.1% of total tax revenue, bringing in S$29 billion – a 25.6% rise thanks to strong corporate earnings.
- Individual Income Tax: Individuals contributed an additional S$2 billion, bringing the total to S$17.5 billion.
- Goods & Services Tax (GST): The third largest contributor, GST revenue surged to S$16.6 billion, boosted by increased consumer spending and the hike in GST rates.
- Property Tax: Property owners paid in S$5.9 billion, contributing 7.4% of total tax revenue.
- Stamp Duty: Despite a slight dip in property transactions, stamp duty still brought in S$5.8 billion.
IRAS also played a crucial role in supporting businesses, processing S$2.3 billion in disbursements to over 131,000 businesses. Major grants included the Progressive Wage Credit Scheme (S$1.67 billion), Senior Employment Credit (S$311 million), and the Jobs Growth Incentive (S$177 million).
This impressive tax collection highlights Singapore’s robust economy and ensures the country has the resources to continue improving its infrastructure, economy, and social welfare.
