Published: Friday March 1, 2013 MYT 8:53:00 PM
Updated: Friday March 1, 2013 MYT 9:39:04 PM
Inland Revenue Board targets RM130bil tax collection for 2013
CYBERJAYA: The Inland Revenue Board (IRB) is confident of achieving the tax collection target of RM130bil set by the government this year based on the current economic situation.
Its chief executive officer, Tan Sri Dr Mohd Shukor Mahfar, said the good economic situation had also seen an increase in the people's income, resulting in the increase of tax collection.
"There's nothing impossible for us to collect that amount or maybe more," he told reporters after attending the 17th Hasil Day celebration and the launch of Hasil 4U, here, Friday by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah and attended by Deputy Finance Minister Datuk Donald Lim Siang Chai.
Dr Mohd Shukor said to achieve the target, IRB would formulate new strategies, identifying the industries with tax leakages.
He said tax leakages occurred for various reasons, including the lack of awareness among tax payers, and misinterpretation of the relevant tax laws. "Not all economies grow at the same rate...in the manufacturing sector for example, it may have bigger volume, but not in contribution because it involves mass production. So, we have to look at this.
"We also make some comparisons with other countries because we are involved in cross-border transactions. So, we have to identify which is the most critical, and which gives the biggest impact to us," he said.
When asked whether the implementation of minimum wage policy had given any impact to tax collection, Dr Mohd Shukor said the impact was indirect as the minimum wage had yet to be taxable.
However, he said it could increase the productivity of workers, generate more profit for the company, and increase the IRB's tax collection.
"It will also gives more spending power to the consumers, which will also boost business transactions and tax collection," he added.