The federal government expects to collect an estimated RM212 billion in tax revenue in 2026, driven by stronger wage growth, resilient corporate earnings and improved compliance through e-invoice implementation, Deputy Finance Minister Liew Chin Tong told the Dewan Rakyat on March 2.
Responding to Stampin MP Chong Chieng Jen on the estimated total collection of individual and corporate income tax as well as Sales and Service Tax (SST) for 2025 and projections for 2026, Liew said income tax from individuals is expected to rise 9.4% to RM49.07 billion for 2026, while corporate income tax collection is projected to increase 6.5% to RM103.35 billion.
“The collection for Sales Tax revenue is forecast at RM26.6 billion in 2026, with Service Tax collection projected at RM33 billion,” Liew added.
Liew highlighted that the projected increase in 2026 tax revenue is underpinned by more stable wage growth, contributing to a 13% rise in registered individual taxpayers, alongside low unemployment and civil service salary adjustments under the Public Service Remuneration System.
“At the same time, higher corporate earnings, particularly in the services and manufacturing sectors, are also expected to bolster collections,” he said, adding that the phased rollout of e-invoice beginning August 2024 enhanced compliance, curb leakages and strengthen corporate tax revenue.
Meanwhile, for 2025, Liew said the revised estimates show individual income tax collection at RM44.86 billion and corporate income tax at RM97.03 billion. The revenue tax collection for SST is estimated at RM25.6 billion and RM30.3 billion, respectively.
“Actual 2025 tax collection data will be available in the Federal Government Financial Statements 2025, to be published by the Accountant General’s Department in the early fourth quarter of 2026,” Liew said.
Liew noted that direct and indirect taxes are collected by the Inland Revenue Board and the Royal Malaysian Customs Department, with proceeds channelled into the Federal Consolidated Fund, except for entertainment duty, which is assigned to state governments under the Federal Constitution.
