CYBERJAYA, March 1 ― The government expects its tax revenue collection to return to pre-pandemic levels by meeting or surpassing the target of RM139 billion this year, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

He said that to support this goal, the Inland Revenue Board (IRB) management needs to formulate short- and mid-term strategies to achieve the target while maintaining its good performance in the future. 

“This includes identifying new economic sectors and implementing the tax laws in a transparent, effective and efficient manner. Indirectly, the effort will increase the Malaysian Family's trust and ensure that taxpayers fulfil their responsibilities,” he said in his speech for IRB's 26th Revenue Day celebration here today.

The text of his speech was read out by Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.

For 2021, Ismail Sabri said, revenue collection jumped 17 per cent year-on-year to more than RM140 million while the country's Gross Domestic Product (GDP) grew by 3.1 per cent compared with a 5.6 per cent contraction in 2020.

He also noted that the government would implement the Tax identification Number (TIN) and Tax Compliance Certificate (TCC) to increase the efficiency and transparency in the country's tax collection.

In addition, starting from 2023, all businesses seeking government projects must have TCCs as a main prerequisite, the Prime Minister said.

To improve the labour market as well as strengthen the business sector, the Finance Ministry would implement fiscal reforms towards a more efficient and transparent taxation system by holding various engagement sessions, he said. 

“Towards this end, the government will table the Fiscal Responsibility Act with the aim of improving governance, accountability and transparency in the country's fiscal management.

“This includes developing the Medium-Term Revenue Strategy that features clearly defined revenue targets in line with global best practices as well as a more transparent, fair and equitable tax system through the use of big data,” he added.

Meanwhile, Ismail Sabri expressed confidence that the government's GDP forecast for 2022 of between 5.5 and 6.5 per cent would be achieved, in line the projections by the International Monetary Fund (5.7 per cent) and World Bank (5.8 per cent).

“This will be driven by the expansionary Budget 2022, recovery in economic and social activities as well as strong external demand that will continue to spur growth,” he added.

At today's event, 10 business entities were honoured with the 2021 Best Taxpayer Award, including Perodua Sales Sdn Bhd, Hong Leong Bank Bhd, YTY Industry Sdn Bhd, and Nestle Products Sdn Bhd. ― Bernama