KUALA LUMPUR: The Inland Revenue Board recorded the biggest collection in its history last year, said Deputy Finance Minister I, Datuk Seri Ahmad Maslan.
He said the achievement was expected to exceed the target set for last year which was RM139 billion, with the performance during the last quarter being the main contributor.
He noted that last year was the most excellent year for the Board in terms of tax collections, strengthening the Board's position as the number one agency in terms of contributions to the country's revenue after the Customs Department.
"What a really good figure to record, though the real amount will be announced by the Finance Minister (Datuk Seri Anwar Ibrahim) sometime soon. Last year was an excellent year for the Inland Revenue Board in terms of collection," he said after visiting the Inland Revenue Board's headquarters in Cyberjaya.
Also present was Inland Revenue Board's chief executive officer and director general, Datuk Dr Mohd Nizom Sairi.
In 2021, the Inland Revenue Board's tax collection increased by as much as 17 per cent to more than RM140 billion compared to the year before, which only contributed almost half the country's revenue amount at the time.
Speaking on such a performance, Ahmad said the efficiency in direct revenue collection will add to the country's revenue apart from the implementation of various initiatives, steps and methods to tackle and address the shadow economy.
"Shadow economy activities are estimated to contribute around 30 per cent to the country's Gross Domestic Product (GDP) and we are able to get an additional tax collection of RM70 billion or 20 per cent from the RM350 billion a year as a result," he said.
Ahmad said that the number of Malaysians that pay taxes is high at around three million people, while for businesses it is in the region of around 400,000.
He said that the country's yield or outcome which comes from direct and indirect taxes were the biggest contributor to the country's income.
He added the importance of direct tax to the country's economy was substantial because the total amount collected can be used for the country's expenditure and returned to the people in the form of subsidies, infrastructure and aid, assistance packages.
"Therefore, the government prioritises on the performance and ability of the Inland Revenue Board in implementing such a responsibility because based on statistics recorded, the collection of direct taxes contributed to more than 50 per cent of the country's total income.
"Such a figure shows almost half of the country's income is generated from the collection of direct tax such as this," he said.
Following the solid performance in direct tax collection, Ahmad said that there was still no discussion by the government to introduce a new tax, including reimplementing the Goods and Services Tax (GST) for the time being.
"There has been no discussion on the new tax since the unity government was formed, but the country really needs to add to its income and revenue channels through various initiatives and efforts that are 'creative'," he said.