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Singapore’s tax take surged to $88.9 billion in the financial year ending March 2025, marking a 10.7% increase from the previous year, according to the Inland Revenue Authority of Singapore (IRAS). The growth reflects robust economic activity, rising corporate profits, and stronger consumer spending.
The collections accounted for 76.9% of government operating revenue and represented 12.2% of GDP, underscoring the central role of taxation in financing Singapore’s social programmes and infrastructure investments.
“Taxes are a critical enabler for public services and economic growth,” IRAS said, highlighting the funds’ role in supporting social schemes, infrastructure, and business incentives.
Corporate Tax Still Leads
Corporate income tax remained the largest contributor at $30.9 billion, up 6.7% year-on-year, driven by strong corporate earnings across key sectors. Its share of total revenue fell slightly to 34.8% from 36.1%, reflecting the faster growth of other tax streams.
GST and Income Tax Strengthen Revenue Base
Goods and Services Tax (GST), Singapore’s second-largest source of revenue, rose to $20 billion, up from $16.6 billion, reflecting a combination of higher consumer spending and adjustments in the GST rate. Individual income tax also climbed to $19.1 billion, reflecting wage growth and an expanding pool of taxpayers.
Property and Stamp Duties Keep Climbing
Property tax and stamp duty collections each reached $6.6 billion, benefiting from steady real estate activity and robust property transaction volumes.
Compliance and Enforcement
IRAS continues to maintain a high standard of compliance, auditing over 8,600 cases and recovering $507 million in taxes and penalties. While lower than the previous year, the figures underline the authority’s ongoing commitment to tackling deliberate tax evasion.
Supporting Businesses
The authority also disbursed over $1.3 billion in grants to around 127,500 businesses under schemes such as the Progressive Wage Credit Scheme and Senior Employment Credit, reinforcing the link between fiscal policy and economic growth.
Singapore’s strong tax performance reflects a resilient economy, with corporate earnings, consumer demand, and property activity collectively underpinning government revenue. Analysts suggest that such fiscal strength provides the government with flexibility to sustain public services while investing in growth-enhancing initiatives.
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