Over the past 10 years the government has sought to modernise and computerise Singapore. Tax administration was one area of public administration that clearly required modernisation. In 1992 the Inland Revenue Authority of Singapore was created to administer income and property taxes and a new value added tax. Planning began to develop an integrated, computerised approach to tax administration, which was soon reorganised on functional lines. This process has had impressive results.
This PREM Note, produced for The World Bank, asks what lessons Singapore’s experience with widespread adoption of technology in revenue administration offer developing countries. It discusses how Singapore implemented this new approach to tax administration and examines how they were so successful with it in such a short period of time. The Note explores the lessons learned and whether developing countries would be able to implement the approach with the same level of success. It concludes that while few countries may be able to go as far and as fast as Singapore has, all can proceed down this path, with advantages for both their revenues and citizens.
