CYBERJAYA: Datuk Seri Anwar Ibrahim wants the Inland Revenue Board (LHDN) to carry out tax collection duties with greater firmness, regardless of the position of any company or the status of individuals.
The Prime Minister said he does not want any company or individual to feel that their position and influence allow them to escape their responsibility to pay taxes.
"We cannot give the impression that the wealthiest are exempt from action. There must be sincerity and courage from all of you, regardless of your connections and positions."
"Whether he is Ahmad or Ah Seng, Tan Sri, or Tun, what matters is whether they pay taxes or not," Anwar said during an officiating speech on 2024 LHDN day.
Also present were Finance Minister II, Datuk Seri Amir Hamzah Azizan and Deputy Finance Minister Lim Hui Ying.
Reflecting on the history of LHDN's transformation from a department to a statutory body on March 1, 1996, Anwar, who was the then Finance Minister, revealed receiving reports indicating difficulties in tax payments from numerous giant corporations and renowned entities in the country.
"Some pay half, while others, due to their enormity, are like giants or dragons... who dares to challenge them?" he said.
Meanwhile, Anwar said the country still has a low tax base, around 11.2 per cent of gross domestic product (GDP), compared to neighbouring countries like Singapore (12.6) and Thailand (16.4).
"The number of companies paying taxes is low, about 435,000 companies compared to 1.5 million registered companies in Malaysia, with less than 29 per cent of registered companies paying taxes.
"As of Dec 31, 2023, the number of individual taxpayers was 5.7 million, with a collection of RM40.96 billion, and for companies, there were 539,113 taxpayers with a collection of RM98.77 billion," he said.
Anwar said he hopes the Inland Revenue Board (IRB) will collect more revenue than the board's projection of RM197 billion this year.
He said IRB had set a new record in tax collection last year, of RM183 billion, which marked an increase of RM7.8 billion or 4.49 per cent compared to the previous year.
In another development, Anwar said if the country continues to turn a blind eye to the country's deficit, it will have repercussions for future generations.
He said that despite efforts by treasury officials to decrease it by five per cent, the country still grapples with high levels of debt and increasing deficits.
"Regardless of the amount of revenue we generate, the culture of extravagance and wastefulness persists.
"We are faced with leadership that persists in lavish spending, and we cannot maintain this system any longer," he said.