FINANCE MINISTRY CONFIDENT TAX COLLECTION WILL NOT BE AFFECTED

KUALA LUMPUR, Sept 3 (Bernama) -- The Finance Ministry is confident that tax collection by the Inland Revenue Board for the 2008 year of assessment will not be affected by the anticipated drop in consumers' purchasing power and the subsequent effect on the business community's income.

Deputy Finance Minister Kong Cho Ha said the IRB's collection covered
all sectors and besides the income of individuals, it also covered the corporate
sector which represented various business activities.

Speaking to reporters after launching the National Taxation Seminar here
Wednesday, Kong said any drop in tax payment in any particular sector will be
compensated by other more profit making sectors.

"We are confident of balancing it up with other sectors (such as petroleum,
services and palm oil. These sectors will cover up any anticipated shortage," he
said.

He was commenting on the IRB's concerns of reduced tax collection following
the increase in the prices of goods and the consequent reduced purchasing power
of consumers.

For the 2007 year of assessment, the IRB has already passed its target of
RM77 billion in collection, with revenue exceeding by 15 to 20 percent for the
first nine months of the year compared with the corresponding period of
2006.

In his speech earlier, Kong said the 2009 Budget had been specially planned
to enable the country face any negative effects from the rise in the price of
oil and food at world level.

The various measures announced in the budget is set to provide more
disposable income to the people, he said.
US$1=RM3.38