KUALA LUMPUR: The e-invoice system will be rolled out gradually this year to detect tax infractions effectively, says Deputy Finance Minister Lim Hui Ying.
She said the ministry would also monitor the implementation of the system periodically to ensure that it could be carried out appropriately, and added that assistance would be prioritised to vulnerable groups like the B40 and M40.
"There will be parties who may be tracked, for example, those who have to pay more taxes. The government will give priority to the B40 group and part of the M40 group if affected, providing facilities such as cash assistance to reduce the tax burden," she said.
Lim said this during the Dewan Rakyat session on Wednesday (March 27) in response to a supplementary question from Parit MP Muhammad Ismi Mat Taib
He had asked about government measures to curb the potential misuse of tax declarations under existing and new tax structures.
Prime Minister Datuk Seri Anwar Ibrahim had announced the mandatory implementation of the e-invoicing system for taxpayers with an annual income exceeding RM100mil starting in August of this year.
The e-invoicing system's phased implementation across income groups aims for full execution by July 1 of next year.
Lim unveiled measures to bolster revenue mobilization, including expanding the tax base, refining tax structures and legislation and providing tax incentives.
These efforts are integral to the Medium-Term Fiscal Strategy (MTRS), intended to streamline medium-term tax planning and align it with expenditure.
Lim then said that the enactment of the Fiscal Responsibility Act 2023 which will be effective from Jan 1, was aimed at fortifying the nation's fiscal governance and discipline.
In Budget 2024, Lim revealed plans to broaden the scope of service taxation, encompassing sectors such as logistics, brokerage, guarantee sponsors, and karaoke services.
Additionally, the service tax rate would increase from 6% to 8% for all services excluding select categories like food and beverages, telecommunication services, vehicle parking provision, and logistics.
Furthermore, the government aimed to augment the nation's revenue base through the implementation of new taxes on luxury goods, capital gains, and e-invoicing.
Lim also noted that government revenue in 2024 was projected to increase to RM312.159bil, considering the tax measures outlined in the 2024 Budget, higher tax collections, and robust economic growth.
"Tax revenue remains the main contributor, accounting for 79.5% of total revenue or 12.57% of gross domestic product (GDP), while non-tax revenue represents 20.5% or 3.2% of GDP.
Revenue collection would be supported by strong economic growth along with measures taken to further enhance revenue mobilization through expanding the tax base and improving tax compliance and transparency," she added.
