Singapore collected S$88.9 billion in tax revenue for the 2024/2025 financial year, marking a 10.7 per cent rise compared with the previous year.
According to the Inland Revenue Authority of Singapore (IRAS) on 11 September, the growth was supported by robust economic expansion and higher consumer spending.
The total tax revenue represented 76.9 per cent of government operating revenue and 12.2 per cent of Singapore’s gross domestic product.
IRAS said the taxes collected were crucial to funding essential public services, supporting economic growth, improving living conditions and enabling social programmes.
Revenue composition
Corporate income tax remained the largest contributor, accounting for 34.8 per cent of revenue. Collections increased 6.7 per cent to S$30.9 billion, up from S$29 billion in the previous year, reflecting strong corporate earnings.
Goods and Services Tax (GST) was the second-largest source at 22.6 per cent, or S$20 billion.
This was a sharp increase from S$16.6 billion the year before, driven by higher consumption and the GST rate hike from 8 per cent to 9 per cent from 1 January, 2024.
Individual income tax contributed 21.5 per cent, rising to S$19.1 billion from S$17.5 billion.
IRAS attributed this to higher wages and an expanding taxpayer base.
Property tax revenue reached S$6.6 billion, forming 7.5 per cent of the total, while stamp duty also contributed S$6.6 billion or 7.4 per cent.
Stamp duty collection rose from S$5.8 billion, due to stronger property transaction volumes.
Compliance and enforcement
Tax arrears remained low, with an arrears rate of just 0.66 per cent across GST, income and property taxes. IRAS emphasised that tax compliance remains high but said it takes firm action against deliberate evasion.
During the year, IRAS audited and investigated over 8,600 cases, recovering around S$507 million in taxes and penalties.
Beyond revenue collection, IRAS processed more than S$1.3 billion in disbursements to about 127,500 businesses under various government schemes.
These included S$924 million through the progressive wage credit scheme, S$277 million under the senior employment credit scheme, and S$51 million through the CPF transition offset, aimed at supporting businesses, workers and job retention.
Year-on-year comparison
In the previous financial year (FY2023/2024), IRAS reported revenue of S$80.3 billion.
The rise in FY2024 reflected both stronger economic conditions and policy adjustments, including higher wages and the GST increase.
The post IRAS reports S$88.9 billion tax revenue in FY2024/25, up 10.7% appeared first on The Online Citizen.
