Tax revenue rises across most categories, although Stamp Duty collection dips slightly due to lower property transaction volume
SINGAPORE’S tax revenue rose 17 per cent to hit S$80.3 billion for FY23/24, a result that the taxman on Wednesday (Sep 4) said reflects strong economic growth and nominal wage growth in 2022.
Tax revenue rose in most categories, based on the annual report of the Inland Revenue Authority of Singapore (Iras).
Corporate income tax takings jumped 25.6 per cent to S$29 million due to strong corporate earnings, Iras said. This is the largest share of Iras’ revenue collection at over a third.
Revenue from individual income tax grew 12.9 per cent, or S$2 billion, to S$17.5 million. The authority said this was because of higher wages and an increase in the number of taxpayers.
There was a 17.7 per cent gain in receipts from goods and services tax (GST) to S$16.6 billion as a result of higher consumer spending and the one-percentage-point increase in the GST rate.
Property tax revenue went up 15.7 per cent to S$5.9 billion, but Stamp Duty collection dipped by about 0.3 per cent, or over S$100 million, due to lower property transaction volume.
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The total revenue collection represents about 77.6 per cent of the government’s operating revenue and 11.9 per cent of Singapore’s gross domestic product, said Iras.
“The taxes collected are used to fund essential services for our community, grow our economy, enhance our living environment, as well as support social development programmes to improve the lives of Singaporeans,” Iras said.
Apart from tax collection, the authority said it also processed close to S$2.3 billion in payouts to more than 131,000 businesses, supporting them as well as workers.
These are grants from schemes such as the Progressive Wage Credit Scheme, Senior Employment Credit and Jobs Growth Incentive.
