Government assures introduction of taxes will not affect vulnerable groups
KUALA LUMPUR: The government has assured that it will only introduce taxes that do not affect vulnerable groups, while also improving the existing tax system.
According to Berita Harian, the Deputy Minister of Finance, Datuk Seri Amir Hamzah Azizan, stated that priority will be given to this aspect before assessing the need to introduce new consumption taxes, including the Goods and Services Tax (GST).
Emphasizing that it is not the right time to reintroduce GST, Amir Hamzah explained that this is due to the challenges low-income individuals are facing with the cost of living.
“The government does not plan to implement GST at this time because it is a broad-based consumption tax, and this is not the right time to reintroduce it.
“Any policy changes to the tax system, such as the implementation of GST, need to be carefully considered to ensure they are progressive, easy to administer, do not negatively impact the cost of living and economic growth, and generate sustainable revenue for the government,” he said during the Minister’s Question Time in the Dewan Rakyat today.
He made this statement in response to an additional question from Datuk Mohd Suhaimi Abdullah (PN-Langkawi) about whether GST would be reintroduced due to its higher revenue potential.
At the same time, Amir Hamzah stated that the government does not intend to extend the Special Voluntary Disclosure Programme (PKPS) 2.0, which ran from June 6, 2023, to May 31, for a longer period.
He noted that during the PKPS 2.0 period, the Inland Revenue Board (LHDN) approved 141,406 voluntary disclosure applications involving 102,572 individual taxpayer cases.
“Additionally, there were 27,707 cases involving companies and the remainder were other categories such as organizations. This total involved a reported tax assessment of RM1.29 billion.
“This assessed amount exceeded the initial target of RM1 billion. Of this assessed amount, RM512.6 million was successfully collected,” he said.
He added that the Royal Malaysian Customs Department (JKDM) received 1,542 voluntary disclosure applications from individual and corporate taxpayers, with a declared tax amount of RM229 million.
He mentioned that this amount also surpassed the expected target of 500 applications with a tax collection value of RM200 million.
PKPS 2.0, implemented by LHDN and JKDM, offered a zero-percent penalty rate for voluntary disclosures made by individuals and companies.
It provided an opportunity for both new and existing taxpayers to voluntarily report income, asset disposal, and document or agreement stamping in accordance with the specified conditions.