Singapore's Tax Collections Skyrocket!

In a remarkable display of fiscal health, Singapore has raked in S$88.9 billion (US$69.3 billion) in tax revenue for the 2024/2025 financial year. This represents a stunning 10.7% surge from the previous year, fueled by robust economic growth and skyrocketing consumer spending.

A Core Pillar of Progress

According to the Inland Revenue Authority of Singapore (IRAS), this impressive tax haul constitutes approximately 76.9% of the government’s operating revenue and 12.2% of the nation’s gross domestic product. The tax revenues are crucial for supporting essential public services, stimulating economic growth, and enhancing the quality of life for Singaporeans.

Tax Compliance: A Solid Record!

With a low arrears rate of just 0.66% for Goods and Services Tax (GST), income tax, and property tax, tax compliance remains high. IRAS emphasizes its commitment to maintaining this standard, taking decisive action against the small number of taxpayers who dare to evade their responsibilities. In the last fiscal year alone, over 8,600 cases were audited, leading to the recovery of around S$507 million in taxes and penalties.

Tax Revenue Breakdown: Who Contributes the Most?

Delving into the specifics, corporate income tax emerged as the leading contributor, accounting for 34.8% of total collections. This sector benefited from strong corporate earnings, rising from S$29 billion to S$30.9 billion in FY2024.

GST followed closely, contributing 22.6% or S$20 billion, which marked a significant jump from S$16.6 billion the previous year. This increase was driven in part by a hike in the GST rate from 8% to 9% starting January 1, 2024, alongside a boost in consumer spending.

Individual income tax also saw substantial growth, making up 21.5% of the revenue collected, climbing from S$17.5 billion to S$19.1 billion, thanks to rising wages and an expanding taxpayer base.

Property tax contributed 7.5%, totaling S$6.6 billion, while stamp duty collections equaled 7.4%, also reaching S$6.6 billion. The latter's increase, up from S$5.8 billion, was largely attributable to a surge in property transactions.

Supporting Businesses and the Workforce

Throughout the last financial year, IRAS has further supported the economy by processing over S$1.3 billion in grants for approximately 127,500 businesses. These disbursements, part of various support schemes, included around S$924 million for the progressive wage credit scheme, S$277 million for the senior employment credit scheme, and S$51 million for the CPF transition offset.

This remarkable fiscal performance underscores Singapore's resilience and potential for future growth, setting the stage for continued prosperity.