CYBERJAYA: The Inland Revenue Board (LHDN) has breached the RM200bil mark in direct tax collection for the first time, hauling in RM203.99bil for 2025.
Prime Minister Datuk Seri Anwar Ibrahim, who disclosed this, said the 10.38% or RM19.18bil increase from the previous year enabled the government to clear RM11.4bil in corporate tax refund arrears.
“Following the stronger collection performance, the government was able to allocate additional funds to resolve past commitments in a more structured and transparent manner,” he said at LHDN’s 30th anniversary celebrations here yesterday.
His speech was read out by Deputy Prime Minister Datuk Seri Fadillah Yusof.
Despite the strong domestic fiscal performance, Anwar warned of systemic economic impact stemming from the escalating conflict in the Middle East.
He said if the crisis was not resolved soon, the country will be exposed to rising logistics costs, mounting price pressures and disruptions to the manufacturing sector.
Urging the private sector to be more agile and pragmatic, Anwar said businesses could no longer rely on old methods to navigate a rapidly changing world.
“It is no longer business as usual.
“This is the time to accelerate productivity, increase investments in innovation and automation, as well as embrace sustainability,” he said.
Anwar added that that the private sector must capitalise on the Madani Economy framework.
To help mitigate rising costs, the Prime Minister also called on the private sector to consider flexible working arrangements including work from home (WFH), as implemented in the public sector.
“This will help reduce fuel consumption, ease cost pressures and maintain workforce productivity and morale.”
Anwar also reminded the entire government machinery to strengthen governance, ensure every ringgit be spent prudently and plug leakages to widen the revenue base.
He urged LHDN to leverage on AI and digitalisation to improve efficiency and simplify compliance.
“The goal is not merely higher tax collections, but to create a taxation system that is fairer, more transparent and highly trusted,” said the Prime Minister.
Anwar said taxation was not just a legal obligation but a pillar of social justice, enabling the country to fund education, healthcare, social protection and development.
