KUALA LUMPUR (Jan 22): Finance Minister Lim Guan Eng has rebutted claims that the record RM137 billion in tax collected by the government last year was solely due to the increase in oil prices, saying a significant chunk was contributed by other sources.

"The tax collection increased from RM123.3 billion in 2017 to RM137 billion in 2018. While the increase in oil prices accounted for about 60% of the rise on tax collection, the balance 40% is contributed by other factors," he said.

He further clarified that RM8.3 billion of the increase was contributed by higher petroleum-related collections while another RM5.4 billion came from other revenue sources.

"So it's not entirely due to the rise in oil price," said Lim.

He was commenting on claims that the tax collection was propped up by the rise in oil prices last year and that the higher collection was based on taxes paid in 2017, reflecting the efforts of the previous regime.

Meanwhile, Lim pointed out that the tax system was changed about two decades ago, and tax payments in Malaysia are no longer based on the previous year's assessment.

He was speaking at a press conference held to announce a Chinese New Year Open House 2019 event which will be jointly hosted by himself and the National Chamber of Commerce and Industry of Malaysia (NCCIM).

The event will be held on Feb 6, from 10am to 12pm at Wisma Chinese Chamber, with Prime Minister Tun Dr Mahathir Mohamad as a guest of honour.