The Inland Revenue Authority of Singapore (IRAS) is embarking on a campaign over the next three years to promote payment of tax by GIRO. The initiative is in line with national effort to raise productivity. The 3-year ‘GIRO Your Tax and Win Cash!’ campaign was launched by Mrs Lim Hwee Hua, Minister in the Prime Minister’s Office and Second Minister for Finance and Transport, on 7 Oct 2010.

More people on GIRO help Increase Productivity

GIRO is an electronic payment mode where the payers arrange with the banks to allow money to be deducted directly from their bank accounts to pay their bills. GIRO will increase productivity for taxpayers, banks and IRAS. For taxpayers who join GIRO, they no longer need to monitor payment due dates, write and post cheques, and queue at payment kiosks. For the banks, the paperless clearing system eliminates manual cheque processing thus freeing up resources and raising productivity. For IRAS, GIRO is the most cost-effective collection mode, enabling a higher certainty of tax collection and greater efficiency.

Target to achieve 70% GIRO Participation Rate

IRAS has been encouraging taxpayers to pay electronically by providing them convenient modes of e-payment via AXS stations, SAM machines and Internet banking, etc. Currently, of the 72% of 2 million taxpayers who are paying their income tax and property tax electronically, 51% of them pay by GIRO. IRAS aims to achieve 70% of GIRO participation rate, or to attract 400,000 more income tax or property tax GIRO sign ups by 2013.

Publicity Campaign on Benefits of GIRO

IRAS will be embarking on publicity drive that includes road-shows at HDB estates and visits to companies to create awareness on the benefits and advantages of paying taxes by GIRO. IRAS’ GIRO Scheme allows taxpayers to enjoy up to 12 interest-free instalments to pay their taxes. Otherwise, taxpayers have to pay their taxes within 30 days of their tax bill.

One of the main reasons cited by taxpayers for not wanting to be on GIRO is the fear of losing control over their finances. However, given technological advancement, this is no longer valid as they now have full control with the e-Services provided by IRAS. A taxpayer who is on GIRO can log into myTax Portal ( https://mytax.iras.gov.sg) anytime to view his GIRO plan. He can also adjust or cancel his GIRO plan by simply making a phone call to IRAS. He also gets his tax refunds faster as the refunds will be made directly to his bank accounts.

Taxpayers on GIRO stand to Win Cash in Lucky Draws

IRAS will save cost when taxpayers switch from cheque and cash payments to GIRO. IRAS will be giving back to taxpayers this productivity savings through a lucky draw promotion with cash prizes totalling $360,000. The lucky draws will be conducted annually over the next 3 years from 2011 to 2013 as an incentive to encourage taxpayers to pay their taxes by GIRO. The lucky draws are open to all individuals who pay income tax and property tax by GIRO. Taxpayers who are already on GIRO will also be eligible. The longer one stays on GIRO, the higher the chances of winning in the lucky draws.

Easy ways to sign-up for GIRO

There are many ways to sign up for GIRO. Taxpayers can get instant approval when they apply for GIRO via AXS stations or Internet banking. Taxpayers may also sign up for GIRO using the payment voucher attached to their tax bill. Alternatively, they may go to IRAS website to download the GIRO application form. For more detailed information on GIRO application, please visit IRAS website at www.iras.gov.sg.