The finance ministry said Petronas is projected to contribute RM20 billion in dividends next year, while petroleum income tax is estimated at RM15.7 billion and petroleum royalties at RM5.1 billion.
News reports earlier this year said the ministry expected Petronas to maintain its dividend payout to the government at RM32 billion despite a 32% drop in profits in 2024.
In the 2026 Economic Outlook report released today, the ministry said the lower petroleum revenue reflects the government’s move to reduce reliance on “volatile commodity-based income” and shift towards a broader, more sustainable revenue base.
In contrast, non-petroleum revenue has shown consistent growth since 2009 and is projected to rise by 8.1% to RM300.1 billion, supported by the full-year implementation of earlier tax and policy measures.
“This transition towards a broader and more sustainable revenue base is consistent with fiscal consolidation efforts aimed at enhancing revenue capacity and maintaining prudent expenditure for social protection and development,” the ministry said.
Meanwhile, the government is also anticipated to receive RM5 billion from the Retirement Fund Inc (KWAP) to partly finance retirement charges, along with RM3 billion in one-off proceeds from the transfer of ownership of Bintulu Port Authority.
Revenue from licences and permits is expected to remain stable at RM15.7 billion, mainly from motor vehicle licences (RM3.4 billion) and the levy on foreign workers (RM3.8 billion).
Direct tax collections are expected to grow by 5.8% to RM187.4 billion, led by higher company and individual income taxes.
Corporate income tax (Cita) is anticipated to remain the largest contributor at RM103.4 billion, while individual taxes are projected to contribute RM49.1 billion.
The growth in Cita is largely due to the full-year implementation of e-invoicing and overall economic improvement, while the rise in individual taxes is driven by job market stability and salary increases for civil servants.
Indirect taxes are set to improve by 8.9% to RM83 billion, with sales and service tax (SST) contributing the highest share of RM59.6 billion, or 71.8%, and excise duties projected to increase to RM12.8 billion with the removal of excise exemptions on fully built electric vehicles.
Non-tax revenue is expected to remain stable at RM72.7 billion, supported by investment income and recurring sources such as licences and permits.
Overall, the government’s total revenue is forecast to rise by 2.7% to RM343.1 billion, driven by higher tax collections following the rollout of fiscal reforms and digitalisation initiatives.