IRAS collects $70m more in taxes

The tax man collected some S$29.9 billion in taxes in the last financial year, thanks to the buoyant property market.

The Inland Revenue Authority of Singapore (IRAS) said this was S$70 million or 0.2 per cent more than in financial year 2008/2009.

Its annual report showed that 56 per cent of the total tax collection came from income tax, which consists of corporate income tax, individual income tax and withholding tax.

Corporate income tax collection came in 10 per cent lower at S$9.6 billion.

IRAS said poorer corporate performance and the one per cent cut in corporate tax rate to 17 per cent with effect from Year of Assessment (YA) 2010 had led to the lower collection.

But individual income tax collection rose 13 per cent to S$6.1 billion due higher employment income reported by individuals for 2008, as compared to 2007.

Property-related measures announced in Budget 2009 such as the 40 per cent property tax rebates and land tax deferral scheme have impacted property tax collection.

The S$2 billion property tax collection was 31 per cent lower than the previous year’s.

But the higher sale volume of residential properties coupled with higher property prices since second quarter of 2009 has contributed to the increase in stamp duty collection, which increased 67 per cent to S$2.4 billion.

IRAS said the average cost per dollar of tax collection went up by 10 per cent to 0.88 cents.

It said the increase was mainly due to an increase in operating costs.

Taxes collected by IRAS are the largest contributor to the government operating revenue (GOR).

In the last financial year it accounted for three quarters of GOR and more than 11 per cent of Singapore’s Gross Domestic Product (GDP).

Source : Channel NewsAsia – 6 Sep 2010

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