3.1
ARE OPERATING REVENUES GROWING WITH GDP?
Trends in Operating Revenue
A key element of Singapore’s economic strategy is to maintain a competitive tax regime.
This strategy was reaffirmed by the Economic Review Committee in 2001 as a key measure
to address the challenges of increasing global competition for investments and talent. The
Government has deliberately adjusted the tax regime in the past 5 years to make Singapore
more competitive and conducive for businesses and more attractive to global talent.
Chart 3.1 shows that the Corporate Income Tax (CIT) rate has come down from 40% in
YA1986 to 30% in YA1993 and 20% in YA2005, while the top marginal rate of Personal
Income Tax (PIT) has come down from 55% in YA1981 to 30% in YA1994 and will fall to
20% in YA2007.