SINGAPORE: Tax collection fell by 7.3% in the last financial year, and a total of S$28.2bil (RM87.14bil) in grants was given out by the Inland Revenue Authority of Singapore (Iras) to support jobs and businesses during the Covid-19 pandemic.

       Iras said that total tax collection amounted to US$49.6bil (RM153.27bil), representing 73.6% of the government’s operating revenue and 10.6% of Singapore’s gross domestic product.

       Total tax collection fell due to dampened business activities amid the pandemic in Singapore, Iras said.

       Despite the impact of Covid-19, the tax arrears rate remained low, at 0.72%. The arrears for income tax, goods and services tax (GST) and property tax fell to S$323.8mil (RM1bil), from S$357mil (RM1.10bil) in the previous financial year.

       The authority had also provided corporate and property tax rebates, extension of tax filing deadlines and deferment of income tax payments and installment payments to ease cashflow for taxpayers affected by Covid-19.

       Iras has also disbursed national grants to enterprises through the Wage Credit Scheme (WCS), Jobs Support Scheme (JSS), Government Cash Grant and Jobs Growth Incentive (JGI).

       In the financial year 2020, it disbursed US$25.7bil (RM79.43bil) JSS payouts to more than 150,000 employers and S$134mil (RM414.20mil) in JGI payments to over 25,000 employers.

       Another JSS payout of S$2.1bil (RM6.49bil) and a JGI payout of S$304mil (RM939.69mil) were disbursed in June.

       Some S$1.4bil (RM4.33bil) was also disbursed in WCS payouts to more than 90,000 employers on the qualifying wage increases given from 2017 to last year, while US$969mil (RM3bil) in Government Cash Grant was given to more than 116,000 qualifying property owners to provide rental relief for tenants.

       Total income taxes – comprising corporate income tax, individual income tax and withholding tax – made up 62% of Iras’ collection.

       Income taxes collected totalled S$30.5bil (RM94.29bil), 0.9% lower than the S$30.8bil (RM95.22bil) collected in the previous financial year, said Iras.

       Corporate income tax collection was S$16.1bil (RM49.77bil), 3.7% lower than the amount collected in the previous financial year, while individual income tax collection increased by 3% to S$12.8bil (RM39.57bil). — The Straits Times/ANN