Singapore sees tax revenue surge to S$80.3b, up 17pc year-on-year

SINGAPORE, Sept 4 — Singapore’s tax revenue for the 2023/2024 financial year surged to S$80.3 billion (RM267.05 billion), marking a 17 per cent rise from the previous year.

This growth reflects the “strong economic growth and nominal wage growth in Singapore in 2022,” according to the Inland Revenue Authority of Singapore (IRAS) today.

The total revenue collected represents approximately 77.6 per cent of the government’s operating revenue and 11.9 per cent of Singapore’s gross domestic product.

“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,” stated IRAS.

The arrears rate for Goods and Services Tax (GST), income tax, and property tax remained low at 0.64 per cent.

IRAS noted that while tax compliance remains high, it will take firm action against the “small minority of taxpayers who refuse to comply and pay their fair share of taxes.”

In the past financial year, IRAS audited and investigated 9,590 cases, recovering approximately S$857 million in taxes and penalties.

Corporate income tax constituted the largest portion of tax revenue at 36.1 per cent, increasing by 25.6 per cent from S$23.1 billion to S$29 billion due to strong corporate earnings.

Individual income tax rose by S$2 billion, reaching S$17.5 billion.

GST contributed the third largest share, increasing by S$2.6 billion to S$16.6 billion, driven by higher consumer spending and the GST rate hike.

Property tax made up 7.4 per cent of the revenue collection, totalling S$5.9 billion.

Stamp duty collection decreased by S$0.1 billion to S$5.8 billion, reflecting a lower volume of property transactions.

In the last financial year, IRAS processed around S$2.3 billion in disbursements to more than 131,000 businesses, including significant grants such as S$1.67 billion for the progressive wage credit scheme, S$311 million for the senior employment credit scheme, and S$177 million for the Jobs Growth Incentive.