KUALA LUMPUR: 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 Monday (July 22), he said LHDN must ensure that no corrupt activities occur among its members and take firm action if such elements are found.
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 they (the wealthy) are accustomed to it. A tax of RM2mil, after negotiation, becomes RM500,000, leading to leakages here and there.
"If the tax is supposed to be RM2mil, then pay RM2mil. 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 that LHDN can exceed this year's tax collection projections.
"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.
The Prime Minister 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, among other things, informed him about 10 Malaysian billionaires who were reluctant to pay taxes.
"So I mentioned to the media, reminding all 10 billionaires to pay their taxes on schedule, otherwise the Inland Revenue Board would have to take action.
"That was not an easy matter. It was also a statement from the Finance Minister at that time which certainly would invite problems and pressure, but I did it because I thought it was the best course of action, because if the minister is weak, the department will not dare," he said. - Bernama
