IRB proves ability to perform in challenging conditions – Tengku Zafrul

KUALA LUMPUR, March 1 – Despite the gloomy and challenging economic conditions, the Inland Revenue Board (IRB) has once again proven its ability as a high-performing organisation by adapting to new norms in conducting its tax operations.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the IRB had played an important role in ensuring the country's fiscal position was sufficient to finance the government's planned spending.

“This was followed via the success of the IRB to record a total tax collection last year of RM123.09 billion which is RM1.39 billion or 1.14 per cent higher than the target set at RM121.7 billion which is the third target review by the Finance Ministry (MOF)," he said at the opening speech of the 25th Revenue Day of the Inland Revenue Board virtually today.

He said achieving the targeted tax collection proved that despite the pandemic, there were industries which were not affected, and some even racked up huge profits as a result of the pandemic.

He said the government was grateful to these industries for their steadfast role even in the midst of the pandemic and contributing in the form of taxes paid in order to stabilise the country's economy.

“I am confident that there is still room for IRB to further improve its collection by spreading the network of potential taxpayers, identifying certain industries and sectors that have been off the IRB radar.

"Hopefully, by exploring new opportunities, the government’s collection target to the IRB for 2021 amounting to RM143.9 billion can be achieved," he added.

In this regard, Tengku Zafrul said the government, particularly the MOF, has huge expectation of the IRB because the IRB is an agency always seen to meet the expected performance.

"The IRB's efficiency in performing its functions today is proof of the right decision to change the status of the IRB from department to board 25 years ago," he said.

He also hoped that the IRB would continue to focus and be committed in carrying out the trust that had been given because the country's financial continuity depended on the body's ability to fulfill its duties and trust.

He said its efficiency and effectiveness in performing its role would prevent the country from resorting to austerity measures as what happened in other countries due to the failure of the tax system in securing the country's financial position.

“I am also sure that the IRB has already compiled, arranged and identified tax strategies to achieve the target or obtain more than that amount... moreover the month for taxpayers’ reports will start soon.

"The IRB has proven not only able to collect taxes from those eligible, but is always ready to carry out the responsibilities entrusted by the government efficiently and effectively," he added.