Govt to review e-Invoicing to avoid burdening small firms, says PM


JOHOR BAHRU: The government is prepared to review the implementation of the e-Invoice system by the Inland Revenue Board (IRB) to ensure it does not place an undue burden on small companies, says Prime Minister Datuk Seri Anwar Ibrahim.

"We will look into it because e-Invoicing is very important to prevent leakages and revenue loss.

"But for small companies, it can be quite burdensome. So, God willing, we will make improvements so that it does not become a burden,” he said when winding up his policy speech at the PKR 2024/2025 National Congress, which concludes on Saturday (May 24).

The e-invoicing initiative began in August 2024 for companies with an annual turnover or revenue of more than RM100 million. The second phase started on Jan 1 this year for businesses with annual sales of between RM25mil and RM100mil.

The third phase of the full implementation of e-invoicing will begin on July 1, involving all types of businesses, including micro, small and medium enterprises (MSMEs).

Anwar, who is also Finance Minister, said Malaysia is among the countries that provide the highest amount of subsidies.

"For example, with the (adjustment of electricity tariffs), 85% of users are not affected, but our way of explaining it was weak and as for gas subsidies, that's valid. Some small companies and others are still facing difficulties, even though provisions are in place to cover their losses.

"This is another matter we will review to ensure small companies are not burdened," he said.

Regarding petrol subsidies, the Prime Minister said the government does not agree with proposals to raise fuel prices and has opted to provide subsidies.

"The Cabinet and I do not agree with raising fuel prices. Prices can be lowered gradually based on current market conditions. However, fuel prices must be increased for foreigners. We have about 3.5 to 4 million foreigners in our country and they benefit from subsidised fuel," he said.

 Anwar said no other country in the world provides subsidies to foreigners and the wealthy, and he assured that Malaysians would not be affected by the subsidy rationalisation.

Meanwhile, the Prime Minister also shared findings from a study by the IDE Research Centre, which showed an increase in support for the Madani government among civil servants.

"The study shows that among the 1.4 million civil servants, the majority of whom are Malays, there is a clear shift in support.  This is a very encouraging sign that should give us confidence that civil servants now have a more positive view of the government," he said.

He added that the Madani government's initiative to implement the Public Service Remuneration System (SSPA), which replaced the Malaysian Remuneration System (SSM) last December, has had a positive impact, with civil servants now working more firmly and efficiently. - Bernama

 

 

 

 

 

 

 

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