Inland Revenue Board of Malaysia deputy chief executive officer (Taxation Operations) Datuk Mohd Nizom Sairi said normally developed countries’ tax rates were far higher and the incomes of small salary earners were also taxed.
‘’An individual earning under RM3,000 is still not taxed. So the ratio in our country is still competitive,’’ he said when interviewed in the Bernama News Channel’s ‘Ruang Bicara’ programme here today.
Mohd Nizom said that income tax was important because it enabled the government to implement development programmes.
He said fifty per cent of the income tax helped the government to finance development programmes.
"Every ringgit contributed via income tax is used in the best possible manner by the government to be returned to the people in various forms,’’ he explained.
Answering an allegation that the board often pursued tax payers until they succeeded, Mohd Nizom said the responsibility of the board was to ensure a fair taxation system.
He said that everybody must pay what they should pay.
‘’We will look for and detect anybody who does not pay in order to be fair to those who paid correctly, 70-80 per cent are obedient in paying their dues, the rest we seek,’’ he said.