11th May 2023 - 2 min read
The Inland Revenue Board (LHDN) has revealed that it is on track to surpass its RM176.1 billion target in tax collection this year, thereby setting a new record. In fact, its data indicated a 20% increase in daily tax collection this year as compared to 2022.
LHDN is expected to collect RM164 billion in net taxes from the RM176.1 billion gross tax collection target this year. Meanwhile, last year saw LHDN recording its largest direct tax collection to date, at RM175.4 billion – itself already an increase of 21.75% from 2021.
Finance Minister II, Steven Sim said that this increase in tax revenue is good news for the country because it will enable the government to implement more programmes and projects to benefit the public. “For example, we were able to give RM150 to assist school children for the first time this year due to better tax collection,” he said, referring to the early school aid announced under Budget 2023 for students attending Year 1 to Form 5.
Chief executive officer of LHDN, Datuk Dr Mohd Nizom Sairi also expressed his gratitude to Malaysian taxpayers for fulfilling their duties and obligations. “We are at a very encouraging level, and I would like to thank the taxpayers who have shown a high level of compliance,” he said.
Datuk Nizom also said that LHDN will strive to streamline its existing A.E.S (awareness, education, and services) approach to continue elevating taxes as a national asset, in hopes of further earning the public’s trust. This is also in line with Prime Minister Datuk Seri Anwar Ibrahim’s goals to use the country’s increased income from direct tax sources for the benefit of the people.
“Certainly, various beneficial agendas for the people can be realised. The living standard quality and wellbeing of the people will also be enhanced through various development projects as a result of sufficient sources of the country’s income,” said Datuk Nizom.
As for the impact of the recent overnight policy rate (OPR) increase on tax collection, Datuk Nizom said that there would be an indirect impact, but it will not be seen immediately. Malaysia’s OPR was raised by 25 basis points (bps) from 2.75% to 3.00% last week.
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