'Robust' economic growth, higher consumer spending: Singapore collects nearly $89b in taxes, up 10.7%

Singapore saw "robust" economic growth and higher consumer spending for the financial year (FY) 2024/25, with tax revenue reaching $89 billion.

This is 10.7 per cent higher than the $80.3 billion collected from April 2023 to March 2024, said the Inland Revenue Authority of Singapore (IRAS) on Thursday (Sept 11).

The total tax revenue collected makes up about 76.9 per cent of the government's operating revenue and 12.2 per cent of Singapore's gross domestic product.

"The taxes collected play a vital role in supporting essential public services, driving economic growth, enhancing our living environment, and enabling social programmes that uplift the lives of Singaporeans," said IRAS.

The arrears rate for Goods and Services Tax (GST), income tax and property tax remained low at 0.66 per cent.

Arrears can be defined as being late or behind on overdue payments.

Corporate income tax largest contributor

IRAS also said that although tax compliance remains high, it takes firm action against the "small minority of taxpayers who wilfully evade their tax obligations".

The authority audited and investigated over 8,600 cases in the last financial year, recovering about $507 million in taxes and penalties.

Corporate income tax, fuelled by strong corporate earnings, remained the largest contributor to tax revenue collection at 34.8 per cent. 

It rose 6.7 per cent to $30.9 billion in FY2024, from $29 billion the previous financial year.

GST made up the second-largest share of tax revenue collection at 22.6 per cent, or $20 billion, up from $16.6 billion in the last financial year.

This increase reflects higher consumer spending and the adjustment in the GST rate from from eight to nine per cent stating Jan 1 last year, IRAS said.

Individual income tax accounted for the third-largest share of revenue collection at 21.5 per cent. It rose from $17.5 billion in FY2023 to $19.1 billion in FY2024. 

This was driven by higher wages and an increase in the number of taxpayers, ccording to IRAS

Increase in stamp duty collection 

Property tax contributed 7.5 per cent ($6.6 billion) of the revenue collection, while stamp duty collection formed 7.4 per cent of revenue collection, also $6.6 billion.

The increase in stamp duty collection from $5.8 billion a year ago was largely attributed to a rise in property transaction volume.

In the last financial year, IRAS processed over $1.3 billion of disbursements to about 127,500 businesses, providing support for businesses, workers and jobs.

The grants were processed under various schemes, which included about $924 million under the progressive wage credit scheme, $277 million under the senior employment credit scheme and $51 million under the CPF transition offset.

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bhavya.rawat@asiaone.com