CYBERJAYA: The Inland Revenue Board (LHDN) is on course for a record tax collection this year by surpassing its RM176bil target, says Deputy Finance Minister II Steven Sim.
He said to date, tax collection was already 20% higher compared with the same period last year.
“Things are looking positive,” he said in his speech at the LHDN Hari Raya open house at Menara Hasil here yesterday.
LHDN last year recorded its largest direct tax collection at RM175.4bil, a 21.75% increase compared with 2021.
This year, it is expected to collect RM164bil in net taxes from the RM176.1bil gross tax collection target.
Sim said the increase in tax revenue would allow the government to implement more programmes and projects to benefit the rakyat.
“For example, we were able to give RM150 to assist schoolchildren for the first time this year due to better tax collection,” he said.
He was referring to the early school aid (BAP) announced under Budget 2023, which saw a one-time payment of RM150 credited to every student attending Year 1 through to Form 5 for the 2023/2024 school year.
LHDN chief executive officer Datuk Dr Mohd Nizom Sairi, who was also present, said there were encouraging signs that tax collection would outdo the target set for 2023.
“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.
Asked if the recent overnight policy rate (OPR) hike by Bank Negara would impact LHDN’s tax collection, Mohd Nizom said: “It will have an indirect impact on taxes but it will not be immediate.”
On May 3, the OPR was raised by 25 basis points to 3%, the first hike since November 2022.
This is the first time this year the OPR was increased after being kept at 2.75% in January and March.
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