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KUALA LUMPUR: The government is working to reduce tax leakage as one of the strategies to improve tax administration in the country, Dewan Negara was told today.
Deputy Finance Minister II, Mohd Shahar Abdullah, said improvements will be made through data integration and management strategies with relevant agencies.
“Other strategies include reducing underreporting and reporting, expanding the government’s revenue base, and harnessing the potential of the informal sector,” he said in closing the debate on the 2020 Finance Bill.
Senator Idris Ahmad and Senator Mohd Apandi Mohamad raised issues related to tax collection during the debate session.
Mohd Shahar said that the Covid-19 pandemic was also one of the factors that affected tax collection.
“Checks found that government revenue collection decreased to RM227.3 billion compared to the original estimate of RM244.5 billion (18 percent) during the presentation of the 2020 Budget in 2019,” he said. .
Therefore, Mohd Shahar said that the government has always been proactive in strengthening tax revenue collection and improving its dynamism through tax reform incentives.
Digging deeper, he said that if the country’s economy recovers in the medium term, the government will broaden the revenue base by reducing the tax gap and increasing fiscal efficiency to ensure sustainable revenue collection.
“The goal will be achieved through the implementation of tax incentives, reducing tax leakage and improving tax compliance through effective auditing,” he said.
He added that strengthening tax compliance would also be implemented by empowering the multi-agency working group. -Called
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