Revenue

In 2008-09 earnings and profits tax collections attained a new high of $146.1 billion. The growth, recorded at $12.4 billion or 9.3%, was brought about by the expanding economy in the previous year of assessment. However, with the global financial crisis in the year, the stock market and property market contracted sharply. Stamp duty collections went down to $32.2 billion, representing a decrease of $19.4 billion or 37.6%. Overall, the total revenue collected by IRD in the year was $191.5 billion, dropped by $9.2 billion or 4.6% from the previous year (Figure 1, Schedules 1 and 2).

Figure 1 Revenue collected by tax type

Type of tax

2005-06
($m)

2006-07
($m)

2007-08
($m)

2008-09
($m)

Profits tax –

Corporations

65,586.1

65,499.6

86,775.6

99,294.4

Unincorporated businesses

4,210.4

6,419.4

4,647.1

4,857.1

Salaries tax

37,493.9

38,585.6

37,479.5

39,007.9

Property tax

1,267.1

1,247.4

1,240.6

832.5

Personal assessment

3,193.9

3,565.6

3,586.6

2,151.1

Total earnings & profits tax

111,751.4

115,317.6

133,729.4

146,143.0

Estate duty

1,675.7

777.7

353.4

176.0

Stamp duty

17,867.2

25,076.6

51,549.1

32,162.1

Betting duty

11,938.1

12,047.4

13,048.4

12,620.3

Business registration fees

1,478.8

1,497.9

1,565.8

154.4

Hotel accommodation tax (Tax rate reduced to 0% from 1 July 2008)

310.0

384.2

450.4

222.9

Total revenue collected

145,021.2

155,101.4

200,696.5

191,478.7

% change over previous year

13.6%

7.0%

29.4%

-4.6%

The revenue collected by the Department during 2008-09 accounted for 70.1% of the Government General Revenue (Figure 2). Profits tax contributed the largest part of the total revenue collected, followed by salaries tax. Together they made up 74.8% of the total revenue collected (Figure 3).

Figure 2 Government General Revenue

This is a bar-chart showing Government General Revenue for 2005-06 to 2008-09.
The figures are as follows:
2005-06 is $205 billion, including 70.7% from IRD collections,
2006-07 is $229 billion, including 67.7% from IRD collections,
2007-08 is $306 billion, including 65.5% from IRD collections,
2008-09 is $273 billion, including 70.1% from IRD collections.

Figure 3 Composition of the revenue collection

This is a pie-chart showing percentage composition of the IRD collections in 2008-09.
The figures are as follows:
54.4% from Profits Tax,
20.4% from Salaries Tax,
16.8% from Stamp Duty,
6.6% from Betting Duty,
1.8% from Others.

With a drop in revenue collections during the year, the cost of collection of revenue increased from 0.58% to 0.63% (Figure 4).

Figure 4 Cost of collection

This is a line-chart showing cost of collection for 2005-06 to 2008-09.
The figures are as follows:
2005-06 is 0.74%,
2006-07 is 0.69%,
2007-08 is 0.58%,
2008-09 is 0.63%.