CYBERJAYA: The Inland Revenue Board (LHDN) has achieved a milestone by collecting over RM200bil in direct taxes for last year, says Datuk Seri Anwar Ibrahim.
At the same time, the Prime Minister urged employers to consider flexible working arrangements to weather global economic challenges.
In his speech at LHDN’s 30th anniversary celebration here on Friday (April 24), Anwar said the direct tax collection of RM203.99bil was an increase of RM19.186bil or 10.38% from 2024.
His speech was read out by Deputy Prime Minister Datuk Seri Fadillah Yusof, as Anwar was away on official duties in Johor.
"Following the stronger collection performance, the government was able to allocate an additional RM11.4bil to clear corporate tax refund arrears, resolving past commitments in a more structured and transparent manner," Anwar said.
Addressing the conflict in the Middle East, Anwar warned of systemic economic impacts if the crisis is not resolved soon, citing rising logistics costs, mounting price pressures, and disruptions to the manufacturing sector.
To mitigate these challenges, he called on the private sector to be more agile and pragmatic in managing operations.
"I urge employers to consider flexible working arrangements, such as work from home (WFH), as implemented in the public sector.
"This will help reduce fuel consumption, ease cost pressures, and maintain workforce productivity and morale," he said.
Anwar, who is also Finance Minister, stressed that the private sector can no longer rely on old methods in a rapidly changing world, noting that "it is no longer business as usual."
He urged businesses to accelerate productivity, increase investments in innovation and automation, and embrace sustainability, adding that the private sector must capitalise on the opportunities opened up by the government's Madani Economy framework.
Anwar also reminded the entire government machinery to strengthen governance, see that every ringgit is spent prudently, plug leakages, and intensify efforts to widen the revenue base.
Moving forward, he urged LHDN to continuously strengthen its analytical and digitalisation capabilities.
"The use of artificial intelligence (AI) and technology must be empowered to increase efficiency, reduce leakages, and simplify compliance.
"The goal is not merely higher tax collections, but to create a taxation system that is fairer, more transparent, and highly trusted," he added.
Anwar added that taxation is not just a legal obligation but a pillar of social justice, enabling the country to fund education, healthcare, social protection and development for the shared prosperity of all Malaysians.
