KUALA LUMPUR, Jan 20 — The Inland Revenue Board (IRB) chalked up a direct tax collection of RM137.035 billion last year, the largest amount yet, the Finance Minister Lim Guan Eng announced today.
“Direct taxes collected in 2018 increased by 11.13 per cent or RM13.723 billion compared to the amount collected in 2017, creating a new record in direct tax collection, at the same time, outperforming the record set in 2014, which was RM133.700 billion,” he said in a statement.
Lim said that the collection was enabled by increased collection from taxpayer components such as companies, individuals, petroleum, cooperatives and stamp duty.
“Besides reflecting the effectiveness of a clean leadership and an administration based on the principles of Competency, Accountability and Transparency (CAT), this increase also shows that economic growth was encouraging in 2018,” Lim added.
He said that the revenue collection from income tax (other than petroleum) contributed to RM116.953 billion or 85.35 per cent of the total collection for 2018, while the corporate sector was the biggest contributor at RM70.036 billion or 51.11 per cent, followed by the individuals who contributed RM36.065 billion or 26.32 per cent.
Tax revenue from petroleum was RM20.082 billion or 14.66 per cent, stamp duty collection was RM5.934 billion or 4.33 per cent and withholding tax collection was RM3.117 billion or 2.27 per cent.
Collection from the Real Property Gains Tax (RPGT) was RM1.467 billion or 1.07 per cent, cooperatives tax collection was RM0.171 billion or 0.12 per cent and the Labuan International Offshore Financial Centre (IOFC) and other taxes stood at RM0.163 billion or 0.12 per cent.
This encouraging collection performance is an outcome of the effective tax-related strategies set by the Pakatan Harapan Government that came into power after the 14th general election. These realigned tax collection strategies set by the Pakatan Harapan government for IRBM have proven to be fruitful,” Lim said, listing tax enforcement activities, tax education programmes, enforcement of travel restriction on errant taxpayers and usage of provisions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) as key strategies in collecting the revenue.
“The Pakatan Harapan government also wishes to thank the rakyat who have carried out their duty in paying taxes and hope that the rakyat will continue to carry out this responsibility for the advancement of our country, Malaysia,” Lim said, also reminding tax dodgers to fulfil their due responsibilities under the Special Voluntary Disclosure Programme (SVDP).
Under the amnesty programme which was announced in the 2019 Budget, tax dodgers who stepped forward to declare their incomes between April 1 and June 30 this year, would face a 15 per cent penalty, while those who declare after the programme ends on June 30 can expect the penalty to range from 80 to 300 per cent, as per existing laws.
