Publication: NST
Date of publication: Sep 3, 2013
Section heading: Business Times
Page number: 003
Byline / Author: Muhammed Ahmad Hamdan
KUALA LUMPUR: THE implementation of the Goods and Services Tax (GST) could be good news for taxpayers as it may see the country's corporate and income tax rates reduced, said Inland Revenue Board (IRB) chief executive officer Tan Sri Dr Mohd Shukor Mahfar.
"Based on the trends worldwide, whenever GST is introduced, the federal government will compromise on the income and corporate tax rates," Mohd Shukor said.
He said while tax reduction is not new, IRB will ensure that tax revenue remains the biggest contributor to the government's income, which currently stands at 60 per cent to 70 per cent.
He added that past records showed tax collection has been growing over the last 40 years despite gradual reduction in tax rates during the period.
"There is no direct correlation that reducing tax rates would result in lower tax revenue. We have our ways to maintain and increase tax revenue," he added.
One of the ways, he said, is to instil a sense of responsibility and the habit of paying taxes in every citizen willingly.
"That's why we introduced the 'Hasil, Your Feel Good Partner' programme. We want tax payers to know that the tax they fork out is a community asset which would go towards development purposes," he added.
Mohd Shukor said the board is on track to collect a total of RM130 billion tax this year.
The board collected some RM125 billion of taxes last year.
There are about five million registered taxpayers in the country, of which 1.8 million are active taxpayers. Tax defaulters constitute about 20 per cent of the remaining 3.2 million taxpayers.
Mohd Shukor said this at the announcement of IRB as Kidzania's new industry partner, here, yesterday.
The partnership will see the addition of IRB tax office establishment at the indoor family education and entertainment centre, bringing its total number of industry partners to 43 to date.
No comments:
Post a Comment