What revenue streams does the Malaysian government rely on?

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Malaysian Government Relies on Direct and Indirect Taxes for Revenue

The Malaysian government's revenue streams are primarily derived from direct and indirect taxes. Direct taxes encompass levies such as Corporate Tax, Personal Tax, Withholding Tax, and Real Property Gain Tax. Indirect taxes include categories like Excise Duty, Customs Duty, Tourism Tax, and the Departure Levy.
Direct Tax Components

Direct taxes represent a significant portion of government income, with specific examples including Corporate Tax, which applies to company profits, and Personal Tax, levied on individual earnings. Further components of direct taxation include Withholding Tax, typically applied to payments made to non-residents, and the Real Property Gain Tax (RPGT), which is imposed on profits made from selling real estate.
Indirect Tax Categories

Indirect taxes are collected through various channels and include charges such as Excise Duty, levied on manufactured goods, and Customs Duty, imposed on imported or exported goods. The Tourism Tax, collected from foreign tourists staying at accommodation premises, and the Departure Levy, charged on passengers leaving Malaysia by air, also fall under this category.
Historical Tax Initiatives

In an effort to bolster tax collection and encourage compliance, the Inland Revenue Board introduced a Special Voluntary Disclosure Programme (SVDP) in 2018. This initiative aimed to provide taxpayers with an opportunity to declare underpaid taxes with reduced penalties. The programme, running from November 2018 to September 2019, reportedly contributed an additional RM7.88 billion to the usual tax collections.

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What revenue streams does the Malaysian government rely on?

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