The Customs and Excise Department (JKDM) is targeting to increase Goods and Services Tax (GST) collection by 10 to 13 percent next year, as compared to RM38 billion this year, says director-general Datuk Seri Khazali Ahmad.

He said JKDM would focus on the issue of GST delivery statement compliance as one of the measures to improve the taxation system next year and ensure the GST collection target was met.

"As of this month, about RM37 billion has been collected and the target collection of RM38 billion this year is achievable.

"From GST compliance in the country, we have reached 97 percent in GST collection delivery forms by traders and it shows greater awareness among them," he told reporters at the Enforcement Agencies Collaboration Seminar here, Monday.

The event was officiated by Finance Deputy Minister Othman Aziz.

The seminar is themed Driving Civil Service Success through Excellent Leadership, Modernisation and Cooperation of Organisations among Implementer Agencies.

In another development, Khazali said the country was expected to lose between RM1 billion and RM1.3 billion a year due to leakages on tax collection on cigarettes, liquor and vehicles at tax-free islands in the country, including Pulau Langkawi in Kedah, Pulau Tioman (Pahang) and Labuan (Sabah).

He said this was expected to be addressed through the restructuring of cigarette and liquor sales tax, as well as tax-free vehicles brought into the island, beginning Nov 1.

"Local residents and tourists, as well as foreign visitors can still enjoy tax exemption for the three items but the way we handle the tax has changed, so that we really know how much cigarette and liquor were purchased on the island," he said. -- BERNAMA