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KUALA LUMPUR (Nov 2): Malaysia's tax revenue is estimated to register RM174.7 billion in 2018, with direct tax collection constituting 76.4% of the total, according to the Ministry of Finance's Economic Outlook 2019 report released today.
This year's direct tax collection is expected to increase 15% (or RM17.5 billion) to RM133.5 billion, contributed mainly by better corporate profitability and higher crude oil price averaging US$70 per barrel.
The main contributors to the higher direct tax collection are income taxes from companies (expected to increase by RM6.1 billion), followed by individuals (RM5.9 billion) and petroleum (RM5.1 billion).
Other direct tax collection such as stamp duties and real property gains tax (RPGT) are estimated to increase by RM500 million, reflecting higher property market values.
Meanwhile, indirect tax collection is anticipated to significantly reduce by 33.1% to RM41.2 billion in 2018.
This follows the abolition of the goods and services tax (GST) in September, and a three-month tax holiday — which altogether resulted in RM21 billion in revenue forgone — as well as the additional RM4 billion allocated for verified and audited GST refunds.
However, the reintroduction of the sales and service tax on Sept 30 is expected to contribute RM4 billion.
Overall, this brings net consumption-based tax to an estimated RM23 billion, nearly half of the initial estimate of RM44 billion.
As for excise duties, collection is estimated to increase to RM10.7 billion from the higher sales of vehicles in 2018, despite continued tax exemption for energy efficient vehicles. — theedgemarkets.com
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