Friday 29 Mar 2024
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KUALA LUMPUR (Oct 21): Federal Government revenue is expected to rise 3.4% to RM219.73 billion in 2017 from a year earlier mainly on higher corporate and petroleum tax income. Goods and services tax (GST) income growth is also seen contributing to the Government's revenue.

According to the Finance Ministry's 2016/2017 Economic Report, total tax income is expected to increase 8.1% to RM180.58 billion in 2017.

Corporate and petroleum income tax is forecasted to climb 9.5% and 24.9% respectively while GST income is expected to rise 3.9% to RM40 billion.

"The non-oil-related revenue continue to be the major contributor to total revenue with a share of 86.2%, attributed mainly to higher GST collection of RM40 billion.

"The Government will continue to consolidate its fiscal position in 2017 while promoting economic growth and implementing rakyat-centric programmes and projects," the ministry said.

According to the ministry, the Government will accelerate public sector reforms to strengthen fiscal management and improve public service delivery. The ministry said the Government expected a fiscal deficit at 3% of gross domestic product during the year.

In 2016, the Government's revenue is predicted to decline 3% to RM212.6 billion from a year earlier mainly due to lower collection of petroleum-related revenue as crude oil prices fell.

But higher GST income is expected to cushion the Government's revenue.

During the year, GST collection is expected to rise 42.5% to RM38.5 billion.

"GST collection partly offset lower revenue," the ministry said.

 

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