Thank you to the LHDN (Lembaga Hasil Dalam Negeri) which released a trove of information about tax collections yesterday. This is the type of information that must be shared with the public on a regular basis to educate the public.
And in our country which has an army of freeloaders and pirates, it is important that they too understand where their free pocket money is coming from. It is not an endless supply. Tax collections is very limited. First the news:
T20 contributed 85% of personal income tax in 2022 says LHDN.
Corporate tax RM97.94b or 55% of overall tax revenue in 2022.
RM39.26b personal income taxes 19% of overall tax revenue of RM175b.
T20 contributed 85% (RM33.68b) of 2022 personal income taxes
total RM39.26b personal income tax in 2022
M40 contributed 13% (RM5.38b) personal income tax in 2022
remaining 2% from miscellaneous categories.
2022 personal income tax RM39.26b was 19% of record RM175.4b collected
Corporate tax contributed RM97.94b or 55% of overall tax revenue 2022
remaining 26% overall tax revenue (RM37.8b) billion from RPGT, stamp duties.
Budget 2023 aims to reduce taxes for M40
increase taxes for 150,000 T20 taxpayers
2% decrease for M40 (RM35k to RM100k) benefit 2.4m taxpayers
RM5b tax exemptions to boost economic activities.
LHDN on track to hit RM176.1b tax collection target in 2023
so far in 2023 LHDN collected more in taxes than this time last year.
My Comments :
So total tax collected (ALL TAXES) in 2022 was RM174.5 BILLION. A record.
First of all to the Lembaga Hasil Dalam Negeri or LHDN , please publish a very big thank you to all Malaysian taxpayers. Jangan kurang asam ok.
Secondly, the tax collected does not belong to the LHDN.
That is our money. The taxpayers money. We work hard so that we can earn money to buy food for the family, to pay all our bills and also to pay the taxes. Please keep that in mind.
Thirdly, the LHDN may want to ponder (just ponder) changing your name to Lembaga Pick Pocket Negara or LPPN. Because this is what you are doing. You are picking the peoples' pockets of their money. The only difference is you do it legally, according to the law. But for the people the effect is the same - money is forcefully taken away from us.
Maybe the name "Lembaga Pick Pocket Negara" will help you understand your work better and help you appreciate and respect the taxpayers better.
I have never heard the LHDN say thank you even once to the Malaysian taxpayers for all the taxes that we pay. Kurang asam betul.
Please include a big THANK YOU to all the hardworking Malaysian taxpayers in your annual report or in your Press Release or whatever.
Ok...let's look at the numbers a little. First Budget 2023 in a snapshot:
"In the revised Budget 2023, there will be an allocation of RM388.1 billion, which includes RM289. 1 billion for operating expenditure, RM99 billion for development expenditure, and RM2 billion for contingency savings."
Ok folks, dengar baik-baik ya:
Total tax revenue in 2022 was RM174.5 Billion.
Budget 2023 was around RM388 billion.
That is a shortfall of 55% !!
The taxes collected are only 45% of the 2023 Budget. Jangan main-main tau.
Even for 2023, the total tax collection is expected to be RM176b (a record). That is still insufficient.
The biggest tax contributors are the corporations, the companies. This will include the hundreds of thousands of SMEs, the Sdn Bhds, your friendly supermarket around the corner, the listed companies, the factories, the electronics factories etc.
I would include the GLCs but they are full of crap. Plus they are not real businesses. They are monopolies, oligopolies and they survive by sucking money from that RM174 billion tax collections.
Corporate taxes contributed RM98 billion or 55% of all taxes collected.
So here is a soalan cepu mas : Should the gomen's policies (dasar-dasar kerajaan) choke, strangle and kill off the corporations or should the dasar-dasar kerajaan help the corporations increase their operations, increase their businesses, increase their sales and generate more profit so that they can pay more taxes?
Please bear in mind - the total tax collectionn in Malaysia was only RM174 billion in 2022 but the Federal Budget 2023 was RM388 Billion. Duit tak cukup.
Tax collection covers only 45% of the gomen's Budget. We are in deep shit.
The T20 contributed RM34 billion or 85% of total PERSONAL income taxes.
RM34 billion is also about 20% of the total tax collection of RM174 billion in 2022.
So the same question applies. Should the dasar-dasar kerajaan choke, strangle and kill off the golongan T20 so that they die off and cannot pay any more taxes?
If the dasar-dasar kerajaan choke, strangle and kill off the corporations then how is the LHDN going to 'pick the peoples' pocket' to get RM98 Billion in corporate taxes?
Duit hangpa nak beli Mercedes dan Alphard nak mai dari mana?
If the dasar-dasar kerajaan choke, strangle and kill off the T20 then how is the LHDN going to 'pick the peoples' pocket' to get RM34 Billion from the T20 groups' personal income taxes?
When you increase the electricity tariff for the corporations (the MV and Hv users) you are making life more difficult for them.
When you increase taxes for the T20 (but give a discount for the M40) you are making life more difficult for the T20. How are they going to keep paying that RM34 billion personal income tax every year?
The corporations and the T20s work hard. Otherwise they will NOT be able to become T20 or to pay so much taxes. Why do you penalise them for working hard? Why do you penalise them when they are paying so much taxes? Otak hangpa dekat lutut ke?
You want to give free money to this golongan, you want to give freebies to that kaum it's ok. Fine. Very, very good. But why do you want to punish the T20 and the corporations that generate so much tax revenues which allow you to give free money to this golongan and to give freebies to that kaum?
Let me ask you again and please think extremely very carefully before you answer this question : otak hangpa dekat lutut ke?
The Budget is RM388 billion. The tax revenue is only RM174 billion or 45% only. Less than half. Memang tak cukup.
Common sense says cut your spending.
Sudah telan RM6 billion for the invisible LCS now they want to spend another RM11.2 billion for the same LCS. That is RM17.2 billion in total. Chairman boleh kahwin bini tiga dah.
Where is the money going to come from? You can pull out money from your bontot-kah?
You can issue MGS (Malaysian Gomen Securities)?
Khazanah Nasional Bhd has just borrowed another RM7.0 Billion. Banyak cantik. Pinjam, pinjam, pinjam.
How many years and years will it take for us to pay off this hutang? Our great grandchildren will be paying off all this hutang. Is that what you call clever management of the economy?
We need to collect taxes. That is a certainty. If we don't collect taxes, we will disappear from the face of the earth.
But before we can collect taxes, our people (not the LHDN) must be able to generate taxable income. Mesti ada sales, revenue, untung, profit. Baru boleh bayar cukai.
Before the people can generate taxable income the dasar-dasar gomen must be in place which encourages, supports, promotes and makes things easier for the people to pursue economic opportunities, to create new businesses, to expand existing businesses, to generate more production, more output, generate more sales and more revenues.
Make things easier for them by lowering the costs of doing business, lowering the costs of labour and manpower, lower the costs of paying for raw materials (no monopolies), cheaper tariffs for power, water, telephone, online data (no monopolies, no APs, no unnecessary licensing and regulations).
Only then will they expand their businesses, make more sales, generate more profits and then pay more taxes.
Kun Pa Yakun (be and it is!) does not work. Ini bukan wayang P Ramlee lah.
Get serious. Grow up. Jangan main-main.
Hello LHDN, jangan lupa ok. Say thank you to the Malaysian taxpayers.
If there are no taxpayers you will not have a job.
By Syed Akbar Ali
It's mind-boggling how things work in boleh land. For example, when drivers are caught breaking traffic rules, a compound is issued. Normally, it should be settled within 14 days or the drivers will have to face the court. But in boleh land, no one bothers. Everyone waits till the end of the year or any offer to discount 50%. Another example, is the council compound cars properly park in the parking bay when the coupon is due. But not those who park illegally, especially those with fully tinted windows. Boleh Land keep rewarding lawbreakers and penalizing lawbidders. Our authorities are not out to prevent crimes. They are waiting for victims to report crimes and worst still, the victims have to…
LHDN never sent me birthday greetings all these years la…. Are they selective in this too??
Well said Syed …. No one cares actually about these things . If not our country would not be where it is now
Our politicians are in denial. As long as they are well fed and their cronies too, nothing matters.
Well, the saying goes, Don’t worry money spent God will send.
This is serious shit. 55% shortfall CANNOT carry on forever
If these idiotic politicians carry on this vein , then fate
similair to Pakistan or Sri Lanka awaits Malaysia
Will Madani man introduce reforms to downsize the
civil service , reduce the perks under NEP and cut down
spending on religious bodies or shutdown GLCs that loses money??
Simple answer is NO
Pandering to majority to sapu peoples money is the norm in Malaysia
It is a foregone conclusion where Malaysia is going to end up
And it is not heaven
Haha,LDHN sent me birthday greetings every year without fail.It appears that Syed is not aware maybe Bcos he is non tax payer.😂🤣