Government raises tax collection target to RM150 billion for 2019

CYBERJAYA: Finance Minister Lim Guan Eng says the Inland Revenue Board (LHDN) will revise the tax collection target to more than RM150 billion for 2019, above the RM147 billion set out in this year’s budget.

Lim said the new target was based on discussions with LHDN chairman Ahmad Badri Mohd Zahir, who was confident it could be achieved.

“The target has now been set higher, to more than RM150 billion,” he said at LHDN’s 23rd Annual Revenue Day here today.

He added that a special voluntary disclosure programme had been put in place for individuals who hold foreign and domestic accounts, where those who take part will only pay a penalty of 10% to 15%.

As of Feb 21, more than 203,000 people had voluntarily disclosed their undeclared income and paid RM1.31 billion in extra taxes and penalties, he said.

On tax refunds for the year, Lim said as of January, RM1.64 billion had been reimbursed, including for the goods and services tax.

He said there were 32,000 tax refund cases involving 18,215 company cases, 14,082 non-company cases and 162 stamp duty cases.

The voluntary disclosure scheme was established to encourage taxpayers who have not declared their income to do so, for accounts in Malaysia and overseas.

Lim also said the government was hoping to complete its study on the impact of acquiring tolled highways in two to three months, following reports that Putrajaya is in talks to acquire four highways from Gamuda Bhd.

“The study is being carried out by Baru Bian as the works minister,” he said. “We are studying it together with the works ministry.”

On Feb 26, Lim had said the government expects the acquisition exercise to take up to six months to fulfil the legal, regulatory and financial requirements.

He estimated savings of RM180 million per annum for consumers.

The four highways involved are Lebuhraya Damansara Puchong (LDP), Sistem Penyuraian Trafik KL Barat (SPRINT), Lebuhraya Shah Alam (Kesas) and the SMART Tunnel. - FMT