Tax Write-up: Tax Collections for Fiscal Year 2018/2019

By Kelvin and Nathaniel (Research and Training Department)

In this month’s publication, we look at an article from the new paper regarding the tax collections in Singapore for fiscal year 2018/19.

This year, IRAS collected S$52.4 billion in taxes and this was 4.4% more than a year earlier. The increase, in accordance to IRAS chairman Tan Ching Yee, was due to the fact that Singapore’s economy expanded by 3.1 percent in 2018 and unemployment rate remained low at 2.1 percent”.

The favourable economic performance contributed to higher tax collections in FY2018/19, which will support the Government’s programmes.

The greatest category of tax revenue came from Goods and Service Tax. Goods and services tax accounted for 21 percent of the total collection, which increased by a slight 1.6 percent to S$11.1 billion. This growth was due to the observed increase in private consumption expenditure in 2018.

However, some concerns raised were that if tax collection would remain high. In response to this, it was mentioned that there would be a foreseeable slowing down in tax collection. This is especially so in areas such as corporate income tax and there is probability that stamp duties for property sales will likely slow down given the current economic slump.

Singapore is expected to grow zero to 1 percent, after full-year growth forecast has been slashed. This will be the slowest growth rate in a decade.

Article: https://www.tnp.sg/news/singapore/iras-collects-524-billion-taxes-44-increase

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