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THE Finance Ministry has projected significant growth in tax revenues for 2026, with expectations of higher collections across personal income tax, corporate tax, and sales and services taxes, reflecting stabilising wages, low unemployment, and improved compliance through digital initiatives.
The disclosure came during the Dewan Rakyat sitting on Monday in response to an oral question from Stampin MP Chong Chieng Jen regarding last year’s tax receipts and the government’s projections for 2026.
In reply, Deputy Finance Minister Liew Chin Tong said the Federal Government tax collections in 2025 amounted to RM44.86 billion from personal income tax and RM97.03 billion from corporate tax. Collections from sales tax and services tax stood at RM25.6 billion and RM30.3 billion respectively.
Looking ahead to 2026, revenue from personal income tax is expected to rise by 9.4 per cent to RM49.07 billion, while corporate tax is projected to increase by 6.5 per cent to RM103.35 billion. Sales tax receipts are forecast at RM26.6 billion, and services tax at RM33 billion.
“The projected growth in tax revenues is supported by more stable wage growth, which has expanded the number of registered individual taxpayers by 13 per cent, alongside low unemployment and adjustments to public sector salaries under the Public Service Remuneration System,” Liew stated.
He added that stronger corporate earnings, particularly in the services and manufacturing sectors, coupled with the phased implementation of e-Invoicing since August 2024, are expected to boost corporate tax revenue while reducing leakages and enhancing compliance.
The ministry noted that finalised data for 2025’s actual tax collections will be available in the Federal Government Financial Statements 2025, scheduled for publication on the website of the Accountant General’s Department in early Q4 2026.
These figures underscore the government’s efforts to strengthen fiscal sustainability and signal confidence in the continued expansion of Malaysia’s tax base, even as external economic conditions remain dynamic. - March 2, 2026
