He said if this positive trend continues, LHDN could achieve or even exceed its revenue collection target of RM176.1 billion this year.

“We are at a very encouraging stage. Thank you to the taxpayers who continue to maintain a good level of compliance,” he told reporters at the Aidilfitri event attended by deputy finance minister Steven Sim here today.

Last year, LHDN recorded a historic-high direct tax collection of RM175.4 billion, an increase of 21.75% compared with 2021.

Meanwhile, Nizom said the “awareness, education and services” approach introduced by LHDN would be streamlined to increase tax collection.

He said Prime Minister Anwar Ibrahim, who is also the finance minister, wanted to see the country’s income from direct tax sources continue to increase so that the government can carry out projects of benefit to the people.

“The living standard and well-being of the people can then be enhanced,” he added.

Asked about the impact of the increase in overnight policy rate (OPR) on tax collection, he said there would be an indirect impact but this won’t be felt immediately.

On May 3, Bank Negara Malaysia’s monetary policy committee increased the OPR by 25 basis points to 3%.