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Wednesday June 18, 2014 MYT 12:00:00 AM
Wednesday June 18, 2014 MYT 8:10:22 AM
PETALING JAYA: A proposed amendment to allow the Inland Revenue Board (IRB) to keep 1.5% of the revenue it collects as a fee may not be viable in the long term, say various groups.
International Islamic University Malaysia finance lecturer Dr Nor Azizan Che Embi said the fee should not be fixed at 1.5%.
“Giving 1.5% of the total collection can be costly in the long run,” she said.
“This is because the tax revenue increases steadily with each year.
“Every ringgit channelled to IRB would mean less income for the Government,” she said, adding that the rate should be reviewed every five years or so.
Nor Azizan was commenting on the Inland Revenue Board of Malaysia (Amendment) Bill 2014, which would give the agency the authority to make investments, appoint staff and manage its own finances.
The Bill, which was earlier tabled in Parliament for first reading, had since been withdrawn pending a review.
Malay Economic Action Council CEO Mohd Nizam Mashar claimed that although the private sector made the bulk of the money, government-linked companies and individuals were the biggest tax contributors.
“It is unfortunate that although the private sector is the driving force behind the ETP (Economic Transformation Plan), they do not contribute much tax, compared with the GLCs,” he said.
IRB, said Nizam, should focus on strengthening its enforcement capability by, among others, integrating agencies such as the Malaysia Companies Commission to support its taxation system.
“And those gaining more, should contribute more,” he suggested.
Mohd Nizam said the proposed 1.5% agency fee offered to IRB should be justified.
“The quantum is rather high,” he pointed out.
Tags / Keywords:
Government, Economy, IRB, income tax, IIUM, Dr Nor Azizan Che Emby, Nizam mashar
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