[h=1]TOTAL TAX REVENUE GENERATED FROM COES EXPECTED TO BE $5.1 BILLION IN 2015[/h]
Post date:
24 Feb 2015 - 11:15pm
During his budget speech on Monday, Finance Minister Tharman Shanmugaratnam gave some more information about the total expenditures and revenues that the government made in 2014.
In accompanying notes, more details were shared about the various figures.
One of the figures shared was that the operating revenue for 2014 was about $61.4 billion, $1.8 billion more than the previously forecast total.
Tharman shared that one of the reasons for this extra unexpected revenue was thanks to higher taxes collected from motor vehicle taxes and vehicle quota premiums (COEs)
For motor vehicle taxes, there is about $1.8 billion expected to be received for the FY2014 thanks to more additional registration fees and lower Preferential Additional Registration Fee (PARF) rebates paid out.
For COE receipts, the total incomes are expected to come in at about $3.7 billion for FY 2014. This is higher than the previous forecast by $0.7 billion as COE prices had risen more than expected.
Looking forward to the forecasts for this financial year, Tharman shared that they expect revenues from COEs to be $5.1 billion.
Motor vehicle taxes are expected to bring in $2.1 billion.
An interesting comparison is that with the government revenues from COEs expected to be $5.1 billion this year, it is about more than 10 times higher than the expected extra income they will receive from taxing the rich more on their personal incomes. Tharman shared that increaseing the personal income tax rate for the rich from 20% to 22% would general about an additional $400 million each year.
It seems that the policy of allowing COEs to be bid up to high prices is really helping the government generate serious revenues. Of course the down side is that this often puts cars out of the reach of even the middle income in Singapore, regardless of if they have genuine need for a car such as if they have many young children or elderly parents to look after.
Post date:
24 Feb 2015 - 11:15pm
During his budget speech on Monday, Finance Minister Tharman Shanmugaratnam gave some more information about the total expenditures and revenues that the government made in 2014.
In accompanying notes, more details were shared about the various figures.
One of the figures shared was that the operating revenue for 2014 was about $61.4 billion, $1.8 billion more than the previously forecast total.
Tharman shared that one of the reasons for this extra unexpected revenue was thanks to higher taxes collected from motor vehicle taxes and vehicle quota premiums (COEs)
For motor vehicle taxes, there is about $1.8 billion expected to be received for the FY2014 thanks to more additional registration fees and lower Preferential Additional Registration Fee (PARF) rebates paid out.
For COE receipts, the total incomes are expected to come in at about $3.7 billion for FY 2014. This is higher than the previous forecast by $0.7 billion as COE prices had risen more than expected.
Looking forward to the forecasts for this financial year, Tharman shared that they expect revenues from COEs to be $5.1 billion.
Motor vehicle taxes are expected to bring in $2.1 billion.
An interesting comparison is that with the government revenues from COEs expected to be $5.1 billion this year, it is about more than 10 times higher than the expected extra income they will receive from taxing the rich more on their personal incomes. Tharman shared that increaseing the personal income tax rate for the rich from 20% to 22% would general about an additional $400 million each year.
It seems that the policy of allowing COEs to be bid up to high prices is really helping the government generate serious revenues. Of course the down side is that this often puts cars out of the reach of even the middle income in Singapore, regardless of if they have genuine need for a car such as if they have many young children or elderly parents to look after.
