KUALA LUMPUR, July 22 — Prime Minister Datuk Seri Anwar Ibrahim wants the Inland Revenue Board (LHDN) to increase efficiency and eliminate corrupt practices that result in tax revenue leakage.
When opening the National Tax Conference 2024 here today, he said LHDN must ensure zero corruption among its members.
Acknowledging that tax collection is very challenging and faces risks such as threats from certain groups, Anwar said he will continue to provide full support to LHDN staff in carrying out their duties.
“These wealthy individuals sometimes follow old ways, which is why I say corruption has become systemic, meaning it spreads and (the wealthy) are accustomed to it. A tax of RM2 million, after negotiation, becomes RM500,000, leading to leakages here and there.
“If the tax is supposed to be RM2 million, then pay RM2 million, but if they provide reasonable excuses and it is reduced slightly, that is acceptable. That is not my business, but I trust in the expertise and honesty of the LHDN members to handle it,” he said.
Anwar also expressed hope LHDN can exceed this year’s tax collection forecasts.
“I want to see every sen, every ringgit that should be paid, paid without exception. But I also want to see that these taxes do not burden the people or companies beyond the set limits,” he said.
Anwar said LHDN plays a major role in ensuring the continuity of national development, as the country’s tax base is very small and if the revenue collected is also low, it can lead to problems for the country.
Anwar also recalled his experience visiting LHDN when it was still a department during his previous tenure as Finance Minister.
He said he was briefed about the department, which informed him about 10 Malaysian billionaires who were reluctant to pay taxes.
“I … reminded all 10 billionaires to pay their taxes on schedule, otherwise the LHDN would have to take action.
“That was not an easy matter. It was also a statement from me as the Finance Minister at that time, which certainly would invite problems and pressure, but I did it as I thought it was the best course of action, because if the minister is weak, the department will not dare,” he said.
— Bernama
