KUALA LUMPUR: The Inland Revenue Board (LHDN) approved RM1.2bil in tax assessment applications under the Special Voluntary Disclosure Programme (SVDP) 2.0, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
Of that amount, LHDN collected RM512.6mil in taxes under the programme, he added.
SVDP 2.0 was implemented from June 6 last year until May 31 this year.
During the same period, LHDN approved 141,406 voluntary disclosures involving 102,572 individuals, 27,707 companies, and other organisations.
"(Under) this programme (SVDP 2.0)... taxpayers (may) pay their taxes either in instalments or in full.
“Throughout SVDP 2.0, the applications received by LHDN and the Customs Department have shown encouraging support from taxpayers,” he said during Minister's Question Time in the Dewan Rakyat on Tuesday (July 16).
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He said Customs received 1,542 voluntary disclosures from individual and corporate taxpayers, involving RM229mil in taxes.
“This amount also exceeded the expected target with 500 applications involving tax collection value of RM200mil,” he added.
Taxes collected under SVDP 2.0 will be placed into the government’s consolidated fund which holds all tax revenue.
“It will be used to cover national expenses approved in Parliament through the annual Budget, which includes public development projects such as schools, universities, hospitals and roads,” he added.
Datuk Mohd Isam Mohd Isa (BN-Tampin) had asked about taxes collected under SVDP 2.0.
In a supplementary question, Mohd Isam asked if there would be an extension of SVDP 2.0, to which Amir responded that there were no plans for now.
He said this was because the period given was enough for taxpayers to make voluntary disclosures.
ALSO READ: Take opportunity of SVDP 2.0 to voluntarily declare unreported income, says LHDN
He added that LHDN has several public awareness programmes to educate individuals and businesses to obtain advice and guides on taxes.
“This includes tax management and understanding the law, and among others,” he said.
Amir also told the House that Customs and LHDN had prepared a new audit strategy dubbed the Compliance Audit Verification System for 2024 to 2026 to prevent and detect revenue leakages.
He said elements of SVDP 2.0 will be included in this system.
“If... the audit finds leakages of revenue, individuals and companies will be advised to declare and pay the remaining taxes, duty or levy through voluntary disclosures.
“Incentives are penalty remission of 100% or 50%, depending on the payment period by the said individual and company,” he added.
Datuk Mohd Suhaimi Abdullah (PN-Langkawi) then asked if the government planned to reintroduce the goods and services tax (GST).
Amir said the government has no plans to reintroduce GST because it is a form of broad-based consumption tax.
“It is not the right time to reintroduce GST, as people, especially those with low income, are facing challenges with the cost of living.
“The government will prioritise improving the existing tax system and one that does not affect vulnerable groups before evaluating the need to introduce a... consumption tax such as GST,” he said.
