Govt revenue to fall 14 pct in 2020 as tax collection slips

The federal government's revenue is projected to decrease by 14 percent to RM227.3 billion in 2020 from RM264.4 billion last year as a result of lower tax collection.

Total revenue is expected to be severely affected following the decline in business, trade, and tourism receipts as the worldwide lockdown reduces global trade vibrancy and people's mobility.

"Despite the impact of the Covid-19 pandemic and lower estimated average crude oil price of US$40 (RM166) per barrel, tax collection continues to be the major contributor to the federal government's revenue with an estimated collection of RM153.3 billion or 67.4 percent to total revenue, albeit lower than the previous five-year average of 75.8 percent," said the Finance Ministry in its Fiscal Outlook and Federal Government Revenue Estimates 2021 report released today...