Malaysia 2010 Budget Update: Tax revenue from companies, individuals to rise in 2010

KUALA LUMPUR: The Federal Government's total tax revenue for this year is expected to register a 1.4% increase to RM162.1 billion or 23.4% of GDP, on higher investment income and also from petroleum income tax (Pita).

However, for 2010, revenue is expected to decline 8.4% to RM148.4 billion or 20.5% of GDP because of lower contributions from investment income and also from Pita. This would be partly offset by higher collection from companies and individuals.

Of the direct tax revenue for 2010, the taxes collected from companies are expected to rise 12.8% to RM35.7 billion (2009: RM31.7 billion) and individuals up 3% at RM15.8 billion (2009: RM15.4 billion).

However, Pita is expected to decline 28.3% to RM19.4 billion (2009: RM27 billion).

As for indirect taxes, collections from excise duties are expected to rise 5.5% in 2010 to RM10.3 billion (2009: RM9.8 billion); and sales taxes to decline 8% to RM7.8 billion (2009: RM8.4 billion).

For non-tax revenue, licenses and permits are expected to show a 8.1% decline in 2010 to RM9 billion (2009: RM9.8 billion).

Investment income is projected to fall 23.7% to RM32.3 billion in 2010 (2009: RM42.4 billion), returning to the 2008 level of RM32.3 billion. 

Written by Joseph Chin