Singapore tax revenue increases 13% to hit record $68.6 billion

Rise comes amid post-pandemic recovery lifting corporate earnings, higher GST rate

- Prisca Ang

Tax collection here rose by 13.1 per cent, continuing an upward trajectory that was interrupted only by a Covid-19 blip, to hit its highest level yet at $68.6 billion.

The $7.9 billion rise in the last financial year compared with the previous year comes amid the post-pandemic economic recovery which has lifted corporate earnings, as well as higher goods and services tax (GST) revenue.

In the financial year covering April 2020 to March 2021, when the pandemic was at its height, tax revenues fell to $49.6 billion from $53.5 billion during the same period a year ago. It recovered to a high of $60.7 billion in FY2021.

The latest amount of $68.6 billion represented 75.4 per cent of the Government's operating revenue and 10.7 per cent of Singapore's gross domestic product, the Inland Revenue Authority of Singapore (Iras) said on Wednesday.

The arrears rate for income tax, GST and property tax fell to 0.59 per cent at $363.1 million for the last financial year, compared with 0.64 per cent in the year before.

Tax revenue collection rose across most tax types, with corporate income tax growing by $4.9 billion to reach $23.1 billion.

It made up the largest share of total collections, at 33.7 per cent.

Meanwhile, individual income tax rose by $1.3 billion to hit $15.5 billion due to higher personal incomes.