PETALING JAYA: The T20 group contributed 85%, or RM33.68 billion, of the personal income tax collected last year, says the Inland Revenue Board (LHDN).
Its director of the CEO’s office, Ranjeet Kaur, said a total of RM39.26 billion in personal income tax was collected in 2022.
The M40 group contributed 13%, or RM5.38 billion, to personal income tax collected in 2022, she told Utusan Malaysia.
The remaining 2% was from miscellaneous categories.
Last year’s personal income tax collection of RM39.26 billion made up 19% of the record RM175.4 billion which LHDN collected.
Corporate tax contributed RM97.94 billion, or 55%, of LHDN’s overall tax revenue last year.
The remaining 26% of LHDN’s overall tax revenue, or RM37.8 billion, was derived from real property gains tax, stamp duties, and taxes on cooperatives.
Ranjeet said Budget 2023 aims to expand the tax base by reducing taxes for those in the M40 group and increasing taxes for those in the T20 group, which involves some 150,000 taxpayers.
She also said the 2% points decrease in M40 personal income tax, which applies to those in the taxable income bracket of RM35,000 to RM100,000, would benefit about 2.4 million taxpayers.
Ranjeet said the government spent RM5 billion on tax exemptions through various initiatives, with most of the exemptions given to businesses to boost economic activities.
Earlier this month, LHDN CEO Nizom Sairi said the agency was on track to hit its RM176.1 billion tax collection target this year.
So far, he said, the agency had collected more in taxes than this time last year, adding that he was confident LHDN could exceed its revenue collection target.