What future holds for tax revenue collection

THE state of a country's finances is inextricably intertwined with the state of the economy.

The argument goes that cash will continue to flow into state coffers as long as the economy continues to grow. Singapore's tax revenue has already swelled to an all-time high in the most recent fiscal year. But can we expect records to be busted each year?

Singapore's economy grew 4.1 per cent and 2.8 per cent in 2013 and 2014, respectively and the official forecast of 2015 growth currently stands at 2-4 per cent.

The Inland Revenue Authority of Singapore (Iras), the government's main tax collection agent, collected S$41.6 billion in tax revenue in the most recent 2013/2014 fiscal year, m…