Singapore's Fiscal Revenues Up

The Singapore’s Monetary Authority of Singapore found out that despite a significant slowdown in economic growth Singapore’s tax revenue in the first half of 2012 had increased slightly.

While the global economy and world trade flows have experienced a significant loss, it is expected that this year the growth in Singapore’s gross domestic product will slow down only to 2.5%. In addition, tax revenue of Singapore shows a small rise from SGD 25.5 bln (about USD 20.9 bln) in the first half of last year to SGD 26.7 bln (which is 16% of GDP) in the first half of 2012.

Income taxes, other indirect taxes including foreign worker levies, and fees and charges, were the main contributors to that increase. Income taxes rose to SGD 10.6 bln from the last year mainly due to higher personal income taxes and the increased wages and bonuses. Property tax and stamp duty collections also rose. Stamp duty rates have increased after the hike in seller stamp duties and the imposition of an additional buyer’s stamp duty.

The impact of the economic slowdown was most evident in goods and services tax collections: they fell by SGD 0.2 bln from a year ago to SGD 4.3 bln in the first six months of 2012.