Taxman collected RM114b in 2016 as economy slowed down

Income tax pushed up to 26% from 25% for those earning between RM600k-RM1mil. Income tax pushed up to 28% from 25% for those earning over RM1mil

KUALA LUMPUR: The Inland Revenue Board of Malaysia (IRBM) collected more than RM114 billion in direct taxes for 2016, slightly lower that the RM116.8 billion in 2015.

Deputy Chief Executive Officer(Management) Datuk Mohd Nizom Sairi said the amount collected is also less than the RM115 billion targeted for the year following the weak economy, as well as fall in global oil prices.

"Economic performance, not just that of Malaysia, but globally, has been negatively impacted with the fall in oil prices from mid-2014.

"It not just directly affected the oil industry but the overall economic sector. 

"As such, the 2016 tax collection fell in contrast to that of previously," he told a press conference here after officiating the National Level Hasil Friendly Visit Programme here today.

Following the Budget 2016 recalibration, a second review by the Treasury expected direct tax collection for 2016 to be at RM115 billion.

For 2017, the IRBM aims to collect RM127 billion in direct taxes in line with the amount set by the government in the Budget 2017. - Bernama