Improve tax system to gain traders’ trust, says deputy minister

 Liew Chin Tong says tax systems should evolve into trusted platforms instead of being viewed as a 'compliance burden'.

Liew Chin Tong, the deputy finance minister, delivering his keynote address at a forum on the future of Malaysian taxation. (Facebook pic)

PETALING JAYA :

The government should invest in improving the digital tax system to gain the trust of small traders and businesses, deputy finance minister Liew Chin Tong said.

Speaking at a forum on the future of Malaysian taxation, Liew said that tax systems should evolve into trusted platforms that simplify operations and support growth instead of being viewed as a “compliance burden”.

“We should invest significantly more in improving these digital systems so that businesses can use them comfortably and confidently,” he said.

Liew said the government must ensure that fairness, transparency, and good governance are practised consistently in order to earn the confidence of the people.

He also called on business leaders to advocate for a clean, honest, and transparent economy rather than one that is overly dependent on a shadow economy.

“Instead of focusing solely on tax cuts, I would like to see more businesses unite in calling for a level playing field that enables Malaysian companies to thrive, and for fair and honest competition among Malaysian businesses,” he said.

Liew said tax policies should be guided by broader economic objectives rather than being treated solely as a technical matter. Among these economic objectives was building a resilient middle class to expand the government’s revenue base.

On the debate surrounding the goods and services tax (GST), he said the focus should not be on extracting more revenue from the existing pool of taxpayers via consumption tax. “Instead, we should strive to build a resilient and prosperous middle class, and through that expand the government’s revenue base.”

The GST, a multi-stage consumption tax, was introduced in April 2015 at a rate of 6% before being zero-rated in June 2018. It was replaced by sales and service tax in September 2018 when Pakatan Harapan came to power.

Liew also called for greater support for the development of Malaysian firms and for Malaysian to acknowledge that many companies were highly capable. “Where Malaysian companies and foreign investors are of equal merit, we should give greater priority to Malaysian firms,” he said. - FMT