Singapore’s tax revenue up 10.7% at S$88.9 billion in FY2024/25 on robust growth and higher consumption
[SINGAPORE] The Inland Revenue Authority of Singapore (Iras) announced that it had collected S$88.9 billion in tax revenue for the financial year of 2024/25.
The 10.7 per cent increase in collection came on the back of strong economic growth and consumer spending.
Corporate tax takings rose 6.7 per cent to S$30.9 billion, up from S$29 billion in the previous year. It remained the largest contributor to Iras’ revenue collection, accounting for more than a third of the total.
Goods and services tax (GST) was the second-largest contributor at S$20 billion, or 22.6 per cent of the total, up from S$16.6 billion in the year-ago period. The jump was driven by a rise in consumer spending and the change in the GST rate from 8 per cent to 9 per cent at the start of 2024.
This was followed by individual income tax. The S$19.1 billion collected made up 21.5 per cent of the revenue takings, up from S$17.5 billion in the previous financial year. Iras cited higher wages and a larger number of taxpayers as reasons for the increase.
The property tax and stamp duty segments each contributed S$6.6 billion to Iras’ revenue collection, accounting for 7.5 and 7.4 per cent of the total, respectively. Stamp duty collection was up from S$5.8 billion in the previous financial year, largely due to a rise in property transaction volume.
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Betting tax contributed to 3.6 per cent of the takings at S$3.2 billion, while withholding tax contributed 2.7 per cent at S$2.4 billion.
The total tax revenue collected represents about 76.9 per cent of the Singapore government’s operating revenue and 12.2 per cent of Singapore’s gross domestic product.
Beyond tax collection, Iras also processed S$1.3 billion in payouts to support businesses and workers. These grants were processed under various schemes, with the key ones being the Progressive Wage Credit Scheme, Senior Employment Credit and CPF Transition Offset.
Additionally, the arrears rate for income tax, GST and property tax remained low at 0.66 per cent.
