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BUSINESS • 02/03/2026 01:20 PM

Stable Salary Growth, Improved Job Market To Support Tax Revenue - Liew

KUALA LUMPUR, March 2 (Bernama) — Revenue from individual taxpayers is projected to increase by 9.4 per cent in 2026, driven partly by more stable wage growth, leading to a 13 per cent rise in registered individual taxpayers, according to the Finance Ministry.

Deputy Finance Minister Liew Chin Tong said the decrease in unemployment and the civil servant salary adjustments under the Public Service Remuneration System (SSPA) also supported the increase.

“Additionally, higher corporate earnings, particularly from the services and manufacturing sectors, and the phased implementation of e-Invoicing in August 2024, are expected to contribute to higher corporate tax revenue while reducing leakages and improving tax compliance,” he said during a question-and-answer session in the Dewan Rakyat today.

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He was responding to a question from Chong Chieng Jen (PH-Stampin) on the total collection for individual and corporate income tax, the Sales and Service Tax in 2025, and estimates for 2026.

Liew said tax revenue from individuals is projected to increase by 9.4 per cent to RM49.07 billion, while corporate income tax is expected to rise to RM103.35 billion, a 6.5 per cent increase against the 2025 collection.

The projected total Sales Tax collection is RM26.6 billion, and Service Tax is RM33 billion.

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For 2025, the revised estimates for individual and corporate income tax collection are RM44.86 billion and RM97.03 billion, respectively. Total Sales Tax collection is RM25.6 billion, and Service Tax is RM30.3 billion, he said.

Liew said the government has already relaxed the phased implementation period for e-Invoicing from six months to one year.

“E-Invoicing has been perceived as a burden. What is important is that it is also part of the digitalisation process, and that aspect of digitalisation has not been sufficiently emphasised.

“The threshold value has also been raised to RM1 million from RM500,000,” he said in response to a supplementary question from Chong on whether the government intends to relax enforcement of e-Invoicing for small and medium industries.

— BERNAMA

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