Comparatively, Singapore has a significantly lighter tax burden

The government of Singapore imposes a much lighter tax burden on the economy compared to the majority of other developed jurisdictions.

Comparatively, Singapore has a significantly lighter tax burden

According to Temasek Holdings Chief Executive Ms Ho Ching, on average, governments of other developed countries on average collect more than 30% of their GDP from taxes. Scandinavian countries like Denmark have a high tax burden of almost 50%. Meanwhile, even with its sovereign wealth fund from oil and gas, Norway has a tax burden of over 40%.

In the United States, taxpayers do not have only a federal tax burden, but also municipal and state taxes as the government’s expenditure is over 40% of the country’s GDP. Hong Kong, a developed economy in Asia, does not spend any money on defence, and has government expenditures of over 18% of GDP.

The Singapore government collects about 15% of the country’s GDP in taxes. Even though this percentage was substantially higher, at about 20% circa 2000, it has fallen as a result of faster economic growth than government expenditure.

Ms Ho Ching stated:

"It seems as though the Government in Singapore is quite lenient, having a much lighter tax burden than most other developed economies, no?"

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