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KUALA LUMPUR, Oct 27 — The Finance Ministry (MoF) is confident that the Inland Revenue Board of Malaysia (IRB)can meet its direct tax collection target of RM115 billion for 2016 despite the uncertain economic conditions.
Second Deputy Finance Minister Datuk Lee Chee Leong said the figure represents a review by his ministry following the fall in global oil prices and the foreign exchange rate as well a change in taxation policy.
“Up to September 30 this year, the IRB collected direct taxes of about RM84.028 billion.
“"This is 73.07 per cent of the ministry's target for the year of RM115 billion,” he told reporters after officiating the National Taxation Seminar 2016 here today.
Earlier in his speech, Lee said through the 2017 Budget, the government would continue its current fiscal policy and ensure it stays on track and expands, alongside initiatives to enhance the contribution of the private sector.
Meanwhile, IRB Chief Executive Officer Tan Sri Dr Mohd Shukor Mahfar said apart from the decline in global oil prices, another factor impacting the lower collection of taxes in 2016, compared to RM121.236 billion in 2015, was the introduction of the Goods and Services tax (GST) on April 1, 2015.
“When the GST was introduced, the government also reduced the income tax rate to compensate for the GST.
“We project that when the GST has stabilised and economic conditions improve, the tax collection will rise,” he added.
Meanwhile, the one-day tax seminar will be held simultaneously at 23 locations nationwide in an effort to improve the understanding of taxation in the community. — Bernama