Inland Revenue Board collects record RM137b in taxes
The Inland Revenue Board created history by achieving the highest collection of direct taxes of RM137.035 billion in 2018, Finance Minister Lim Guan Eng announced today.
Lim said the direct tax collection rose 11.13 percent in 2018 from the year before, as well as broke the best-performing direct tax collection record of RM133.70 billion in 2014.
"The increase was contributed by higher collection from the taxpayer components such as companies, individuals, petroleum, cooperatives, stamp duty, and others
"Besides reflecting the effectiveness of clean leadership and efficient administration, and accountability and transparency, the revenue increase also shows that the economic growth was still encouraging in 2018," he said in a statement here today.
Lim noted that revenue from income taxes (other than petroleum) contributed about 85.35 percent of the total tax collection in 2018.
The company component was the largest contributor at 51.11 percent, followed by individual component (26.32 percent), petroleum tax revenue (14.66 percent), stamp duty collection (4.33 percent), share tax collection (2.27 percent), real property gains tax (1.07 percent), co-op tax collection (0.12 percent), and Labuan IOFC and other taxes (0.12 percent).
"The government is committed to reducing revenue leakages and increasing tax compliance rates with the launch of the Special Voluntary Declaration Programme from Nov 3, 2018 and until June 30, 2019, by offering a very low penalty rates of 10 percent and 15 percent (on the amount of tax payable).
"Hence, the government calls on taxpayers who have tax compliance issues to immediately take advantage of this programme to avoid paying a higher penalty of 80 percent to 300 percent when the programme ends," he said.