Simplifying tax administration and compliance can lead to higher collections

ONE of the main sources of revenue for many countries is taxation. According to a study conducted by the International Centre for Tax and Development, 80% of government revenue is derived from taxation in approximately half of the countries around the world.

In many other countries, around half of government revenue comes from tax collections. Based on the 2020 Malaysia budget, 63.9% of the government’s revenue is from taxation, i.e. corporate income tax, personal income tax, indirect tax and other taxes.