PUTRAJAYA – The government has high hopes that the Inland Revenue Board (IRB) is able to achieve its tax collection target of RM127 billion this year, as well as direct tax collection target of RM143.9 billion for 2021, said Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
The finance minister said IRB’s functions are key to ensure optimum tax collection despite the challenges posed by the pandemic.
He said the agency’s ability to operate effectively will facilitate the government’s efforts to realise its recovery agenda as outlined in Budget 2021 and the 12th Malaysia Plan.
“Efforts to realise the government’s agenda for the people’s well-being and nation’s prosperity will not be realised if there is insufficient finances,” he said in his speech at the virtual launch of IRB’s Innovation and Integrity Day 2020.
“I call on all IRB employees to continue carrying out their tasks to ensure the government has sufficient funds to finance the country’s expenditure.”
He said Budget 2021, tabled on November 6, will support the business sector through the introduction of taxation measures that ultimately benefit targeted groups.
Putrajaya’s goal to lessen the financial burden on citizens is reflected in the reduction of the income tax rate and increased tax relief limit, among others.
“The announcement of tax measures without introducing any new taxes is among the government’s continuous efforts to stabilise the national economy, which is impacted by the Covid-19 pandemic,” said Tengku Zafrul.
He said the government is looking to fine-tune matters related to tax revenue by addressing the shadow economy, which has an estimated size of 21% of Malaysia’s gross domestic product, as well as curbing the smuggling of goods with high tax rates. – Bernama, November 19, 2020
