KUALA LUMPUR: The increase in direct tax collection last year by the Inland Revenue Board of Malaysia (IRB) was based on the economic growth recorded in the year of assessment 2018, said Finance Minister Lim Guan Eng.
Lim made this clarification following claims made by several quarters that the encouraging tax collection was actually based on 2017’s economic performance, thus it did not reflect the current state of the economy.
These quarters also said for the same reason the encouraging tax collection could not be the outcome of effective tax-related strategies set by the Pakatan Harapan government that came into power after the election.
Lim however countered: “In fact, it is reflective of a resilient economy coupled with the effectiveness of a clean leadership and an administration based on the principles of competency, accountability and transparency.
“It was also supported by a 34 percent hike in collection from the Sales and Service Tax (SST) which was introduced in 2018.”
Lim further said the ministry would continue to issue statements on the economy, based on facts and accurate figures.
On Sunday, the minister announced that the IRB achieved a new record in direct tax collection last year, with RM137.035 billion collected, which was 11.13 percent more than the RM123.312 billion collected in 2017. – Bernama
