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KUALA LUMPUR (Oct 18): Revenue will continue to be diversified by increasing the contribution of indirect taxes and non-tax revenue such as licenses, permits, fees and rentals, said the mid-term review of the 11th Malaysia Plan.
The government will have more initiatives to improve tax compliance, which will be undertaken to ensure collection is maximised from both direct and indirect taxes, the review said.
As e-commerce and activities relating to sharing economy are on the rise, the government will explore imposing tax on these online transactions.
Meanwhile, non-tax revenue will be enhanced, among others, by maximising the cost recovery of government assets, where more agencies will be empowered to improve the utilisation rate of assets. In this regard, the funds accrued will be used to finance operating costs, particularly for asset maintenance. These efforts will reduce government dependency.
Federal government foreign borrowing stood at RM21.3 billion, while the debt service charges were at 12.6% to revenue at the end of 2017. Nevertheless, these charges continued to increase, compared with 9.8% to revenue in 2010.
Despite increasing concerns about its rising debt, Malaysia continues to be rated favourably with a stable outlook by major international rating agencies, backed by strong economic fundamentals. — theedgemarkets.com
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