Skip to content

Singapore Budget 2026 vs Budget 2025: Complete Revenue Comparison

Picture of The Financial Coconut
Follow The Financial Coconut

 

Operating Revenue Comparison Table

Revenue Category Estimated FY2025 Revised FY2025 Change FY25 (Est vs Rev) Estimated FY2026 Change FY26 vs Rev FY25 % of Total FY2026
Corporate Income Tax $32.67B $35.24B +$2.57B (+7.9%) $37.77B +$2.53B (+7.2%) 28.0%
Goods and Services Tax $21.73B $21.30B -$0.43B (-2.0%) $22.25B +$0.95B (+4.5%) 16.5%
Personal Income Tax $20.23B $20.64B +$0.41B (+2.0%) $21.80B +$1.16B (+5.6%) 16.2%
Vehicle Quota Premiums (COE) $6.60B $8.66B +$2.06B (+31.1%) $9.42B +$0.76B (+8.8%) 7.0%
Foreign Worker Levy $7.39B $7.14B -$0.25B (-3.4%) $7.46B +$0.32B (+4.5%) 5.5%
Asset Taxes $6.89B $6.99B +$0.10B (+1.5%) $7.32B +$0.33B (+4.7%) 5.4%
Stamp Duty $5.92B $6.80B +$0.88B (+14.9%) $6.92B +$0.12B (+1.8%) 5.1%
Fees and Charges (Ex. VQP) $5.08B $5.48B +$0.40B (+7.9%) $3.90B -$1.58B (-28.8%) 2.9%
Customs, Excise & Carbon Taxes $4.04B $3.98B -$0.06B (-1.5%) $4.16B +$0.18B (+4.5%) 3.1%
Betting Taxes $3.29B $3.63B +$0.34B (+10.3%) $3.77B +$0.14B (+3.9%) 2.8%
Motor Vehicle Taxes $2.57B $2.39B -$0.18B (-7.0%) $2.80B +$0.41B (+17.2%) 2.1%
Withholding Tax $2.40B $2.49B +$0.09B (+3.8%) $2.63B +$0.14B (+5.6%) 2.0%
Other Taxes (LBC & ATT) $2.37B $3.98B +$1.61B (+67.9%) $1.63B -$2.35B (-59.0%) 1.2%
Others $0.77B $0.89B +$0.12B (+15.6%) $2.01B +$1.12B (+125.8%) 1.5%
Statutory Boards’ Contributions $0.41B $0.84B +$0.43B (+104.9%) $0.51B -$0.33B (-39.3%) 0.4%
Water Conservation Tax $0.40B $0.40B $0.00B (0.0%) $0.41B +$0.01B (+2.5%) 0.3%
TOTAL OPERATING REVENUE $122.78B $130.86B +$8.08B (+6.6%) $134.75B +$3.89B (+3.0%) 100.0%

Key Insights

Biggest Surprises in FY2025 (Estimated vs Revised)

  1. Vehicle Quota Premiums: +31.1% ($2.06B windfall) - The largest percentage increase, reflecting sustained high COE prices
  2. Corporate Income Tax: +7.9% ($2.57B windfall) - Significantly above expectations due to stronger economic growth
  3. Other Taxes (LBC & ATT): +67.9% ($1.61B windfall) - Major one-off collections from land betterment charges
  4. Stamp Duty: +14.9% ($0.88B windfall) - Property transaction activity exceeded forecasts

Biggest Projected Growth FY2026 vs Revised FY2025

  1. Motor Vehicle Taxes: +17.2% ($0.41B) - Driven by higher COE quota and cessation of EV incentive rebate from Jan 2027
  2. Vehicle Quota Premiums: +8.8% ($0.76B) - Expected increase in COE quota from vehicle deregistrations
  3. Corporate Income Tax: +7.2% ($2.53B) - Continued strong corporate profitability
  4. Personal Income Tax: +5.6% ($1.16B) - Wage growth and employment gains

Revenue Sources Declining in FY2026

  1. Fees and Charges: -28.8% (-$1.58B) - Significant reduction, likely due to reclassification or policy changes
  2. Other Taxes: -59.0% (-$2.35B) - Normalisation after FY2025’s exceptional land betterment charge collections
  3. Statutory Boards’ Contributions: -39.3% (-$0.33B) - Return to normal levels after FY2025 spike

The Vehicle Revenue Story

Combined vehicle-related revenue (COE + Motor Vehicle Taxes):

  • Estimated FY2025: $9.17B
  • Revised FY2025: $11.05B (+20.5%)
  • Estimated FY2026: $12.22B (+10.6%)

Vehicle-related charges have surged from an estimated $9.17B to a projected $12.22B—a 33.3% increase over initial FY2025 projections, representing nearly $3 billion in additional revenue extraction from car owners.

Tax Mix Evolution

The proportion of revenue from different sources shows a clear trend:

Top 3 Revenue Sources FY2026:

  1. Corporate Income Tax: 28.0% ($37.77B)
  2. GST: 16.5% ($22.25B)
  3. Personal Income Tax: 16.2% ($21.80B)

Together, these three sources account for 60.7% of all operating revenue, with corporate taxes alone representing more than one-quarter of government income.

Source: Ministry of Finance Singapore, “Analysis of Revenue and Expenditure Financial Year 2026”

Let us know what you think about this topic, and what do you want to hear next.

You can now be our community contributor and make a pitch to have your favourite personality be on our show.
Join our community group and drop us your insights on this topic.

Stay ahead in your financial journey! Sign up for our newsletter to receive insights, tips, and strategies from The Financial Coconut

Let us know what you think of this post