Tax officers’ contracts not renewed due to automation, says LHDN

 

The Inland Revenue Board said the revenue it collects cannot simply be used to renew the contracts as suggested by certain quarters. (Bernama pic)

PETALING JAYA: The roughly 1,000 tax officers under contract with the Inland Revenue Board (LHDN) will not have their contracts renewed as most of their tasks have been automated, says the tax agency.

In a statement, LHDN explained that the agency had gone through a digitalisation process to automate many of its tasks and improve its efficiency in administering the country’s taxation system.

It said this automation had allowed tasks that were previously carried out by contract officers to be distributed to permanent officers. As such, it decided in 2018 not to continue hiring officers under daily or monthly contracts and this move will be implemented from Jan 1, 2023.

This move will affect 42 officers on monthly contracts and 998 others on daily contracts.

The agency said the officers had been notified of their contract non-renewal early this year so as to give them enough time to look for other jobs.

“The revenue LHDN collects cannot simply be used to renew the contracts of these officers as suggested by certain quarters,” said LHDN.

“If this suggestion is implemented, it would result in negative perceptions by many. The revenue LHDN collects must be distributed for the country’s prosperity.

“We hope this explanation will end the confusion and misunderstanding surrounding this issue,” said the agency.

The statement came in the wake of reports that LHDN’s tax officers under contract would be laid off.

Last Sunday, Malaysiakini reported that 967 tax officers under daily contract had pleaded with Prime Minister Anwar Ibrahim to renew their contracts.

Former Terengganu PKR chief Azan Ismail was reported as saying that a group representing the officers would be submitting an official letter to Anwar soon.

In today’s statement, LHDN also said it would host joint programmes with tax agent companies in a bid to secure jobs for the affected officers.

It said permanent postings to higher positions would be granted to permanent officers based on merit and the suitability of their positions.

The agency also said it could not afford to offer permanent postings to all contract officers as it had to ensure opportunities for permanent officers and candidates from outside the agency.

The agency also shared that it had made 653 contract officers permanent from 2017 until this year. - FMT