RM5.7 billion in Sabah taxes last year

Published on: Friday, May 30, 2025
Published on: Fri, May 30, 2025 Text Size: Abu Tariq said the upward revision in the target was due to encouraging tax collection performance last year, which surpassed that of 2023. Kota Kinabalu: The Inland Revenue Board (IRB) of Sabah collected RM5.7 billion in tax revenue last year, with a new collection target of RM6.2 billion for 2025, reflecting positive momentum and growing taxpayer compliance in the state. Chief Executive Officer of IRB Malaysia Datuk Dr Abu Tariq Jamaluddin said the upward revision in the target was due to encouraging tax collection performance last year, which surpassed that of 2023. 'IRB will continue to monitor the performance of companies that are negligent in fulfilling their tax obligations. 'These companies can opt for instalment payments, and it is the responsibility of the Sabah State IRB to ensure compliance with the agreed payment schedule,' he said, after paying a courtesy call on Yang di-Pertua Negeri Sabah, Tun Musa Aman, at Istana Seri Kinabalu, Thursday. Tariq also introduced the new Sabah State IRB Director, Datin Dayang Halimah Awang Ahmad, who succeeds Azrul Hisham Shamsudin, as part of the visit. He added that IRB Sabah recently conducted 'Ops Pematuhan (OP) Tombak' in Tawau from April 23 to 25, this year.
Advertisement 'These operations are vital to ensure adherence to tax regulations, including the use of the electronic assessment and stamp duty payment system (STAMPS),' he said. Meanwhile, 380 taxpayers with inactive status have been identified and found active doing business within the city area. Dr Abu Tariq said this shows there is still uncollected tax revenue and action is needed to update taxpayer records. 'This finding provides a clear indication of the untapped potential for revenue collection and the need for further action to ensure taxpayer records are comprehensively updated,' he said. He said among the five main types of businesses operated by these inactive taxpayers are fresh produce business (fruits, vegetables, and fish), dry food business, handicraft businesses, food stalls and wholesale traders at markets. Some 23 officers from HASiL Kota Kinabalu, Keningau and Labuan, along with 35 personnel from City Hall (DBKK), were involved. Abu said the PCTA aimed to verify the status of inactive taxpayers, particularly among business license holders operating around Kota Kinabalu – specifically in Anjung Kinabalu, Anjung Senja, and the Safma Night Market — with the goal of reactivating their tax files. Abu said PCTA represents HASiL's continued commitment to strengthening tax compliance, broadening the tax base, and fostering stronger synergy between agencies to enhance national governance. He said integrated operational approach demonstrates that effective tax compliance strategies do not rely solely on enforcement, but instead require close collaboration between agencies — especially through comprehensive and structured information sharing. 'The sharing of business licence data by City Hall was a key catalyst for the success of this operation. Strategic partnerships established through this collaborative program should be continued between federal agencies and local authorities in the future to align goals and ensure sustainable national revenue,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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