Goods and Services Tax
GST collections are expected to increase by 4.2% to $3.8 billion in FY2006. The continued
recovery in consumption expenditure will be partly offset by GST-related tax incentives.
These include the zero-rating of GST on tools produced in Singapore but used in the
manufacturing of exported goods ($50 million). Before taking into account the tax losses
from these initiatives, GST was expected to grow by 5.6% from revised FY2005 – in line with
the strong GDP growth.
Motor Vehicle Revenues
Collections from motor vehicle taxes are expected to increase by $0.3 billion (20.4%) to $1.8
billion as de-registrations taper off, thereby reducing the amount of PARF rebates paid out.
Collections from VQP are also expected to rise, by $0.1 billion (21.6%) from FY2005, to $0.6
billion in FY2006
Betting Taxes
Revenue from betting taxes in FY2006 is expected to remain relatively constant when
compared to revised FY2005 levels, at $1.5 billion.
Other Taxes
FY2006 collections from other taxes are estimated to be $2.1 billion, $0.1 billion (5.9%)
higher than revised FY2005 levels, with collections expected to grow with the economy.