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Direct tax collection climbs 5.8% to RM174.48bil

Published 03 November 2026, 03:34 pm Updated 05 November 2026, 07:31 am KleverstockEN
Direct tax collection climbs 5.8% to RM174.48bil

Image credit: Focus Malaysia

KUALA LUMPUR: Malaysia's gross direct tax collection increased 5.8% to RM174.48 billion in the first 10 months of 2026, compared with RM164.92 billion in the corresponding period last year.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim attributed the growth partly to stronger tax compliance measures, including the use of data gathered through the e-Invoice system.

He said more than 97,000 taxpayers had voluntarily submitted tax returns for previous years, resulting in total tax payable of RM1.68 billion.

"Through strengthened compliance efforts and the use of e-Invoice data, over 97,000 taxpayers have come forward to voluntarily submit tax returns for previous years, with a total tax payable amounting to RM1.68 billion," he said in a speech at the Inland Revenue Board's (IRB) 2026 Innovation and Integrity Day celebration on Tuesday.

The speech was read by Finance Minister II Datuk Seri Amir Hamzah Azizan.

Anwar said the e-Invoice system was part of the government's efforts to improve tax compliance and make tax administration more efficient. He also commended IRB personnel for their role in strengthening the country's revenue position.

Separately, the IRB reported that federal government tax revenue rose 9% to RM129.6 billion in the first half of 2026, from RM119.1 billion a year earlier.

Deputy Finance Minister Liew Chin Tong had attributed part of the increase to higher corporate income tax collections.