A total of S$68.6 billion (US$50.3 billion) in tax revenue was collected for the 2022/23 financial year in Singapore, a 13.1 percent increase from the previous year.
The S$7.9 billion increase reflected the country’s economic recovery following the end of the COVID-19 pandemic, the Inland Revenue Authority of Singapore (IRAS) said on Wednesday (Sep 6).
The arrears rate for income tax, Goods and Services Tax (GST), and property tax, meanwhile, fell to S$363.1 million, or 0.59 percent – compared with 0.64 percent in the preceding financial year.
“Taxes collected are used to support Singapore’s economic and social programmes to achieve quality growth and an inclusive society,” IRAS said in a media release.
Tax revenue collection rose across most tax types.
“Of the S$7.9 billion increase in collection, corporate income tax accounted for S$4.9 billion on the back of buoyant corporate earnings,” IRAS said.
“GST rose by S$1.5 billion due to higher consumption and a rebound in international arrivals, while individual income tax increased by S$1.3 billion on account of higher personal incomes.”
Stamp duty collection dipped, however, decreasing by S$800 million – or 12 percent – due to a lower volume of transactions compared to the year before.
In the last financial year, IRAS disbursed a total of S$4.6 billion in grants to more than 120,000 enterprises to support local hiring and wage growth for Singaporeans, the authority said.
These grants come under schemes like the Jobs Growth Incentive (JGI), Progressive Wage Credit Scheme (PWCS), Senior Employment Credit (SEC), and Small Business Recovery Grant (SBRG).
Of this sum, S$2.7 billion went to more than 68,000 businesses with local hiring under the JGI. This will help to create good and long-term jobs for Singaporeans, IRAS said.
Under the enhanced PWCS, S$1 billion went to providing transitional wage support for more than 70,000 employers, with higher government co-funding for lower-wage workers.
Corporate income tax made up the largest share of IRAS’ revenue collection, accounting for S$23.1 billion, or 33.7 percent.
It was followed by individual income tax at S$15.5 billion, or 22.6 percent. IRAS said that 83 percent of this figure came from taxpayers with annual incomes exceeding S$150,000.
GST accounted for S$14.1 billion – 20.5 percent – and stamp duty accounted for S$6 billion, or 8.7 percent.
CNA
