KUALA LUMPUR (Jan 8): The government is looking to collect RM155 billion worth of taxes for 2020, 5% more than the RM147 billion it targeted last year, according to Finance Minister Lim Guan Eng.

“The amount of gross tax collected for the entire country in 2019 by the IRB was RM145.08 billion,” Lim told reporters today at the Inland Revenue Board's client meeting day.
 
When asked as to why the government had set a higher target, given 2019's tax collection had missed its target by RM2 billion, Lim said the government always sets a higher target.

He also said IRB's tax collection approach would be "softer and friendlier", compared with how it was during the previous administration. "“We do not believe in the approach taken by the previous government of sending those who raid taxpayers' homes in the middle of the night, wearing masks and with M16s. I don’t think that is the correct approach,” he said.

Lim said the government feels engaging with taxpayers is the best way forward, to ensure better tax collection.

When asked if the government would continue the special voluntary disclosure programme (SVDP), Lim said no.

Separately, on the proposed takeover of Gamuda Bhd's highway concessions, Lim said the issue was discussed in today's Cabinet meeting, and that an announcement will be made when a decision has been reached.

“We have discussed in Cabinet; we will let you know in an official announcement. I cannot be giving off the cuff statements,” Lim said.

On the recent jump in oil prices, Lim said the government’s Budget 2020 is based on an assumption of US$62 a barrel. “But many are saying that the [current] rally cannot be sustained. So far, the US has not retaliated against Iran, so if the conflict ends there, the oil price will go down,” Lim said.

He added that the government is confident that it can manage the oil price fluctuations, should hostilities continue, though he noted it will have to fork out more for petrol subsidies. At the time of writing, Brent crude oil price was at US$68.71 per barrel.