Government revenue consists of three components – direct taxes, indirect taxes and non-tax revenues. Direct taxes consist of income taxes from companies, cooperatives individuals, petroleum and other taxes, as well as estate duty, stamp duty, real property gain tax and others. Indirect taxes consist of export duties, import duties, sales tax, services tax, taxes on commodities such as rubber, tin, palm oil and others. Non-tax revenue consists of dividends from GLCs, road tax, licenses and permits and revenue from federal territories.
Direct taxes and indirect taxes on average constitute 50% and 23% of the government’s revenue from 1990 to 2013. The difference in percentage contribution was smaller in the early 1990s from 1990 to 1997.
To read the rest of the article and to access our e-Archive, subscribe to us for
RM150 a year.
Subscribe Sign in