Revenue
In 2011-12, the Inland Revenue Department collected $238.3 billion, which is another record high after the previous year. It represents an increase of $29.3 billion or 14% over the amount collected in the previous year. The increase mainly came from profits tax and salaries tax collections. Profits tax soared by 27% to $118.6 billion, while salaries tax climbed 17% to $51.8 billion. Stamp duty, on the other hand, dropped by $6.6 billion or 13% and stood at $44.4 billion. An analysis of the revenue collected by tax type is provided in Figure 1.
Figure 1 Revenue collected by tax type
Type of tax | 2011-12 ($m) |
2010-11 ($m) |
2009-10 ($m) |
2008-09 ($m) |
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Profits tax – | |||||||||||||||||||||||||
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113,798.6 | 88,191.4 | 72,224.3 | 99,294.4 | |||||||||||||||||||||
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4,801.3 | 4,991.7 | 4,381.1 | 4,857.1 | |||||||||||||||||||||
Salaries tax | 51,761.3 | 44,254.7 | 41,245.4 | 39,007.9 | |||||||||||||||||||||
Property tax | 1,948.4 | 1,647.1 | 1,677.6 | 832.5 | |||||||||||||||||||||
Personal assessment | 4,512.2 | 3,921.8 | 3,655.8 | 2,151.1 | |||||||||||||||||||||
Total earnings & profits tax | 176,821.8 | 143,006.7 | 123,184.2 | 146,143.0 | |||||||||||||||||||||
Estate duty | 94.2 | 212.8 | 185.1 | 176.0 | |||||||||||||||||||||
Stamp duty | 44,355.9 | 51,005.1 | 42,382.6 | 32,162.1 | |||||||||||||||||||||
Betting duty | 15,760.6 | 14,759.1 | 12,767.1 | 12,620.3 | |||||||||||||||||||||
Business registration fees | 1,292.9 | 35.7 | 578.7 | 154.4 | |||||||||||||||||||||
Hotel accommodation tax (Tax rate reduced to 0% from 1 July 2008) | 0.0 | 0.0 | 0.0 | 222.9 | |||||||||||||||||||||
Total revenue collected |
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% change over previous year | 14.0% | 16.7% | -6.5% | -4.6% |
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The revenue collected by the Department during 2011-12 accounted for 71.6% 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 71.5% of the total revenue collected (Figure 3).
Figure 2 Government General Revenue
Figure 3 Composition of the revenue collection
With a rise in revenue collections during 2011-12, the cost of collection of revenue dropped from 0.56% to 0.51% (Figure 4).
Figure 4 Cost of collection