No single tax agency for now, says PM


THERE are no plans yet to implement a Single Tax Agency (STA) by corporatising and merging the Customs Department and the Inland Revenue Board (LHDN), says Datuk Seri Anwar Ibrahim.

The Prime Minister, who is also Finance Minister, said the government remains committed to improving the governance of the national taxation system so that it will be more efficient, transparent and compliance-friendly, in line with current needs and international best practices.

“At present, there is no decision or plan to implement the STA.

“However, in efforts to enhance the governance of the national taxation system to be more efficient and capable of addressing revenue leakages, efforts are being intensified to strengthen cooperation between LHDN and the Customs Department, especially in information sharing and enforcement,” he said in a written reply to a question from Datuk Dr Nik Muhammad Zawawi Salleh (PN-Pasir Puteh).

Nik Muhammad Zawawi had asked the Finance Ministry to state whether there are plans by the government to implement the STA by corporatising and merging the Customs Department and LHDN, or whether to coordinate the national taxation system under the National Single Window, which is a single gateway for trade.

Anwar said one of the latest initiatives was e-invoicing, adding that although this initiative is led by the LHDN, transaction data will be shared with the Customs Department.

“Additionally, the LHDN and the Customs Department are also working together on enforcement activities related to cigarette smuggling.”

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