Bank Islam TAP-i users can now pay income tax via handphones

KUALA LUMPUR: Bank Islam Malaysia Bhd expects its TAP (Transact-at-Palm) Mobile Banking-i (TAP-i) service to contribute 6% to its fee-based income this year with the introduction of the country’s first on-the-go payment of income tax via mobile phones.
Managing director Datuk Seri Zukri Samat said revenue from the TAP-i service grew 35.6% to slightly over RM7 million last year from 2014.
“This (RM7 million) represents about 5% of our fee-based income. We are targeting slightly more now,” he told reporters at the signing of a strategic business collaboration agreement with the Inland Revenue Board of Malaysia (LHDN) yesterday.
He said revenue growth is in line with the anticipated increase in subscribers of the TAP-i service from 560,000 now to 600,000 by year-end.
Yesterday, the bank announced the expansion of its mobile banking services to include income tax payment. Under the agreement with LHDN, TAP-i subscribers will be able to pay their income tax via their mobile phones.
“TAP-i is unique as it enables users to perform electronic transactions without the need of internet,” said Zukri.
The most popular service on TAP-i is the interbank fund transfer, which recorded a 183% year-on-year increase in usage in 2015.
Other services available on TAP-i include checking banking account balance, electronic payments for credit cards and utility bills, prepaid top-ups, refinancing payments and zakat payments.
Deputy CEO Khairul Kamarudin said the bank aims to rope in more local authorities in order to provide assessment payment services to its customers.
He added that it is also looking to collaborate with SSM, a tie-up which is subject to regulatory approvals, which he hopes to obtain this year.
LHDN deputy CEO (taxation operations) Datuk Sabin Samitah said electronic tax payments have increased consistently from 406,074 transactions (RM26 billion) in 2013 to 987,655 (RM34 billion) in 2014 and 1.83 million transactions (RM36 billion) in 2015.