a day ago
- Business
- New Straits Times
High earners contributed bulk of RM37bil in income tax
KUALA LUMPUR: High-income earners contributed the bulk of the RM37.77 billion in individual income tax collected in 2023, the Dewan Rakyat was told.
In a written parliamentary reply, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said those earning over RM100,000 a year accounted for 86 per cent of the total income tax revenue.
The top 20 per cent of taxpayers, with taxable income of more than RM1 million, contributed one-fifth of the total collection.
He said the government valued the contribution of high-income taxpayers to strengthening the country's fiscal position and was committed to addressing tax leakage involving undeclared assets, offshore income, cross-border transactions and online business activities.
Efforts were also underway to improve tax administration efficiency through digitalisation and to raise public awareness, Anwar added.
"The government greatly appreciates the role and contribution of high-income taxpayers in helping to boost economic stability and strengthen the fiscal position, so that national development can be carried out more equitably," he said in a written reply to Aminolhuda Hassan (PH-Sri Gading).
Anwar said data on the number of individuals in Malaysia with a net worth of more than RM100 million was not available in the Inland Revenue Board's database, because wealth levels did not directly correspond with taxable income.
This was in response to a question from Aminolhuda, who had asked for the number of individuals with a net worth exceeding RM100 million and how many from this group had paid more than RM1 million in income tax annually over the past five years.
Anwar said certain assets, such as specific forms of property, were not subject to income tax unless they were sold or disposed of. He added that the structure and treatment of income tax were also continuously enhanced to ensure Malaysia's tax system remained fair and progressive.
