Sabah IRB expects lower oil price not to affect tax
Published on: Wednesday, November 04, 2015
Kota Kinabalu: A lower tax collection forecast for petroleum will not have much impact on the overall tax collection in Sabah in 2016, said State Inland Revenue Board (IRB) Director Kamaruzzaman Ab Salleh.Instead, he said, Sabah will maintain a positive growth momentum of between five and six per cent, just like in previous years, due to the strong crude palm oil and oil palm businesses. He predicted that a lower tax performance on petroleum will only reflect at the national level.
ADVERTISEMENT
"Tax collection for the State will continue to increase if we look at this based on our past records. The main activities in Sabah are still palm oil and CPO. I believe it can cushion the impact of the lower oil prices for Sabah," he told reporters after launching the National Tax Seminar 2016 Budget Proposals, here, Tuesday. Without revealing the anticipated quantum of increase in the tax collection in Sabah, Kamaruzzaman said IRB has targeted to collect RM132.566 billion for the whole country this year. The number is lower than the RM134 billion collected in 2014, which Chief Executive Officer Tan Sri Dr Mohd Shukor Mahfar blamed the weaker global fuel prices. On the proposed tax amendments for next year, Kamaruzzaman said the amendments will further benefit the middle and lower income groups, but not so good news for those in the higher income bracket.
ADVERTISEMENT
Under the recently tabled budget, 26 amendments were proposed on the Income Tax Act 1967, three on the Saving And Transitional 1977, five proposals on Petroleum 1967, four proposals on the Real Property Gain Tax, two amendments in the Labuan Business Activity Tax 1990, two amendments in the Promotions of Investment Act 1986, four amendments on the Income Tax Rules, six amendments on the Income Tax Exemption Orders and two amendments in the Stamp Duty Rules and Orders. "Many of these amendments will be gazetted and enforced beginning next year," he said.
ADVERTISEMENT
"Among them, taxes hike and those earning RM600,000 a year, will have to pay 26 per cent, from 25 per cent previously, while those earning RM1 million, 28 per cent from 25 per cent," said Kamaruzzaman and revealed that non-resident will also have to pay 28 per cent in income tax next year. Meanwhile, he said taxpayers can enjoy tax deductions from their spouse, which is RM4,000 from RM3,000 at present, study tax deductions from RM5,000 to RM7,000 and those who cared for their parents can enjoy RM1,500 for each father and mother, and children (RM2,000 for those under 18 and RM8,000 above 18 and is studying full time). Kamaruzzaman also said e-filing will become mandatory for taxpayers when submitting their return forms in 2016, adding that those who failed to provide correct particulars will have their forms deemed as incomplete by the board. "There are few amendments on section 120H, which involved taxpayers who failed to provide their correct particulars on their tax returns as provided for under paragraph 77 4B or 77 A 3." "If the taxpayer does not follow the criteria correctly, we will deem the forms as incomplete," he said. Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
