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PUTRAJAYA: The government is hopeful that the Internal Revenue Board (LHDN) can achieve its tax collection target of RM127 billion this year, as well as the direct tax collection of RM143.9 billion planned for 2021, Minister of Finance Tengku Zafrul Aziz said.
He said that the role and function of LHDN is very important to ensure that tax collection is always at the optimal level, although collection activities during the Covid-19 pandemic are very challenging.
“Efforts to realize the government’s agenda for the well-being of the people and the prosperity of the nation will not be achieved if there is not enough finances,” he said in his speech at the IRB 2020 Innovation and Integrity Day virtual launch. .
Tengku Zafrul said that the 2021 budget, presented at the Dewan Rakyat on November 6, will act as a means for the well-being of the people and will support the business sector by introducing fiscal measures that would benefit target groups.
The government’s goal of reducing the financial burden of people due to the impact of Covid-19 translates into reducing the income tax rate and increasing the tax relief limit.
“The announcement of tax measures without introducing any new taxes is one of the government’s ongoing efforts to stabilize the economy of the country that has been affected by the Covid-19 pandemic,” he said.
Tengku Zafrul said the government is also seeking efforts to adjust tax revenues by tackling the shadow economy, estimated to be around 21% of the country’s gross domestic product, as well as to curb the smuggling of products with high tax rates. .
Meanwhile, LHDN Executive Director Sabin Samitah said that as a tax collection agency under the Ministry of Finance, it will do more to fulfill its duties to generate the financial sources the government needs to revive the country’s economy.
