IRAS reports 13.1% rise in tax revenue amid economic recovery Post-COVID-19
Inland Revenue Authority of Singapore (IRAS) reported a 13.1% increase in tax revenue for FY 2022/23, reaching S$68.6 billion. This rise reflects Singapore's post-pandemic economic recovery. \n \nCorporate Income Tax saw the most significant gain, while digital enhancements improved the user experience, with 70% approval for the new VICA Bot launched in 2023.
Singapore: The Inland Revenue Authority of Singapore (IRAS) has disclosed that the total tax revenue for the Financial Year (FY) 2022/23 reached $68.6 billion, marking a 13.1% hike from the previous FY.
This surge echoes the nation's economic rebound after the cessation of the Covid-19 pandemic.
Tax Revenue Breakdown:
- The bulk of the increase, $4.9 billion, stemmed from Corporate Income Tax (CIT) due to strong corporate earnings.
- GST grew by $1.5 billion, thanks to elevated consumption and a resurgence in international visitors.
- Individual Income Tax (IIT) saw a boost of $1.3 billion from higher personal earnings.
- In contrast, a decline in transaction volumes led to a 12% dip in Stamp Duty collections, amounting to a decrease of $0.8 billion.
The collection distribution further revealed:
- CIT constituted the lion’s share of IRAS’ collections with $23.1 billion (33.7%).
- IIT followed at $15.5 billion (22.6%), with a significant 83% coming from individuals earning over $150,000 annually.
- GST occupied the third slot at $14.1 billion (20.5%).
- Stamp Duty and Property Tax made up 8.7% ($6.0 billion) and 7.4% ($5.1 billion) respectively.
The total tax revenue represents a substantial 75.4% of the Singapore Government’s Operating Revenue and 10.7% of the nation’s Gross Domestic Product.
Supporting the Community with $4.6 Billion in Grants
In its commitment to bolster businesses and the workforce, IRAS disbursed $4.6 billion across over 120,000 enterprises.
The prime schemes under which these grants were allocated include the Jobs Growth Incentive (JGI), Progressive Wage Credit Scheme (PWCS), Senior Employment Credit (SEC), and Small Business Recovery Grant (SBRG).
Digital Enhancements for Better User Experience
IRAS’s relentless pursuit of enhancing user experience led to the launch of the revamped mobile-friendly e-Stamping Portal in October 2022.
Additionally, the recent rollout of the IRAS Virtual Intelligence Chat Assistant (VICA) Bot in February 2023 offers users a richer digital journey, with 70% of users endorsing the new feature.
In the era of AI-driven chatbots like ChatGPT, IRAS and GovTech are working in tandem to upgrade the Bot. Their focus is on enriching user interactions, understanding precise queries, and delivering more refined responses.
To promote the adoption of Seamless Filing from Software (SFFS), IRAS is joining hands with software developers, offering extended filing due dates and penalty waivers for select errors. This has been accompanied by over 30 engagement sessions with various stakeholders.
As a result of the initiatives, IRAS noted a noticeable 12% growth in the usage of IRAS’ self-help digital utilities, totalling 43 million transactions in FY 2022/2023. Moreover, contacts from taxpayers saw a 3.6% decline compared to the previous FY, standing at 1.3 million.
