Ministry of Finance expects govt revenue to grow by 1.5pc to RM307.6b in 2024

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KUALA LUMPUR, Oct 13 ― The federal government’s revenue collection in 2024 is envisaged to record a marginal growth of 1.5 per cent to RM307.6 billion or 15.6 per cent of...

According to the Finance Ministry, the federal government’s revenue collection in 2024 is envisaged to record a marginal growth of 1.5 per cent to RM307.6 billion or 15.6 per cent of gross domestic product, driven by higher tax collection. — Bernama picKUALA LUMPUR, Oct 13 ― The federal government’s revenue collection in 2024 is envisaged to record a marginal growth of 1.5 per cent to RM307.6 billion or 15.6 per cent of gross domestic product , driven by higher tax collection.

The bulk of the increase is primarily attributed to continuous higher collection from companies’ income tax and individual income tax at RM106.4 billion and RM42.5 billion, respectively.The increment in CITA is primarily contributed by better corporate earnings prospects and continuous efforts in enhancing audit and tax compliance. Similarly, individual income tax is projected to increase by 6.9 per cent, in tandem with a better outlook for the unemployment rate and annual wage growth.

The ministry said revenue from indirect taxes is anticipated to increase by 4.7 per cent to RM58.6 billion, mainly contributed by higher collection from sales and services tax . Similarly, services tax is estimated at RM17.5 billion, on the back of higher demand for food and beverages followed by telecommunication and insurance sectors.

The annual dividend from Petronas is projected to be lower at RM32 billion while the annual dividends from Bank Negara Malaysia and the Retirement Fund Incorporated are estimated at RM3 billion and RM1 billion, respectively. Meanwhile, non-petroleum revenue with a share of 80 per cent is envisaged to increase by 5.3 per cent to RM245.8 billion, reflecting better revenue diversification on the back of a favourable economic outlook.

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