PETALING JAYA: Malaysia's gross direct tax collection for 2018 increased by 11.13%, says Lim Guan Eng (pic).
The Finance Minister announced that the Inland Revenue Board collected RM137.03bil last year, an increase of about RM13bil from 2017.
This is a new record in direct tax collection, he said, in which the amount collected broke the record set in 2014, which was RM133.7bil.
"The rise is attributable to increased collection from components of taxpayers such as companies, individuals, petroleum, cooperatives, stamp duty and others," he said in a statement on Sunday (Jan 20).
He added that the increase in direct tax collection reflected the effectiveness of a clean leadership, and that economic growth was encouraging in 2018.
Corporate tax was the largest component of the direct tax collection, contributing RM70.03bil or 51.11% of direct taxes.
This was followed by individual tax component which contributed RM36.06bil or 26.32% of direct taxes.
Tax revenue from petroleum contributed RM20.08bil or 14.66% to direct taxes.
Other components include stamp duty collection at RM5.93bil (4.33%), withholding tax collection at RM3.17bil (2.27%), real property gains tax collection at RM1.46bil (1.07%), cooperatives tax collection at RM0.17bil (0.12%).
Labuan International Offshore Centre and other taxes amounted to RM0.163bil, or 0.12% of total direct tax collection.
Lim said the tax collection performance was a result of effective tax-related strategies implemented by the Pakatan Harapan government.
He added that these strategies include beefing up tax enforcement activities, having more focused tax education programmes and improving the process of imposing travel restrictions on taxpayers with tax arrears.
"The high-level of integrity and transparency of the Pakatan government in spending every cent of tax collected from the rakyat also played a very important role in improving the level of compliance among taxpayers and led to this increase," he said.
Lim also thanked the rakyat who carried out their duty in paying taxes and he hoped that they will continue to do so for the advancement of the country.
He further urged taxpayers who have tax arrears to participate in the Special Voluntary Disclosure Programme so they will only be imposed a penalty rate of 10% and 15%.
After the programme ends on June 30 this year, he said, taxpayers with compliance issues will be imposed with a penalty rate of 80% to 300%.