CYBERJAYA: Prime Minister Datuk Seri Anwar Ibrahim has emphasized the importance of the Inland Revenue Board (LHDN) being more stringent in its enforcement efforts, stating that everyone, regardless of their position, should pay their taxes. He stressed the need for LHDN to debunk the perception that the wealthy and influential individuals are exempt from tax enforcement.
During an event at the LHDN headquarters on Friday (March 1), Anwar remarked, “I always say, carry out your duties. Whether he is an Ahmad, Ah Seng, Tan Sri or Tun, see whether or not they are paying taxes. If they are not paying taxes, (audit) them and take action.”
Reflecting on his time as the finance minister from 1991 to 1998, Anwar recalled visiting LHDN, which was then merely a government department. He mentioned that many prominent companies in the country struggled to pay taxes, with some only settling half of their dues. Anwar acknowledged the courage of LHDN’s leadership in taking action against even large corporations, which led to his decision to elevate LHDN to an agency.
Anwar highlighted Malaysia’s relatively low income tax to gross domestic product ratio of 11.2%, compared to Singapore (12.6%) and Thailand (16.4%). As the Finance Minister, he commended LHDN for achieving a record income tax collection of RM183.34 billion last year, representing a RM7.8 billion increase from the previous year.
He disclosed that 5.7 million individual taxpayers had contributed RM40.96 billion, while 539,113 companies had paid RM98.77 billion in taxes by December. Anwar also mentioned that the ongoing Special Voluntary Disclosure Programme by LHDN had garnered 68,806 voluntary declarations totaling RM610.62 million as of February 15.
Emphasizing the positive impact of LHDN’s new initiatives on national revenue, Anwar noted the expansion of the Sumbangan Asas Rahmah (Sara) initiative by the Customs Department and LHDN, with aid recipients increasing to over 700,000 from 210,000 the previous year. He urged the beneficiaries to remember the contributions of LHDN, Customs Department, and other government agencies.
Individual and non-individual taxpayers are now able to submit their tax returns for the 2023 year of assessment via e-Filing starting from Friday.
