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)
 
  Profits tax –                
 
Corporations
113,798.6   88,191.4   72,224.3   99,294.4  
 
Unincorporated businesses
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
238,325.4
 
209,019.4
 
179,097.7
 
191,478.7
 
  % change over previous year 14.0%   16.7%   -6.5%   -4.6%  

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