KUALA LUMPUR: Economists are advocating for a more user-friendly tax payment process and the introduction of tax education in schools and universities as ways to promote greater tax compliance among Malaysians.
The suggestions follow the Inland Revenue Board's (IRB) decision to appoint 26 celebrities and social media influencers as strategic partners to create content that raises public awareness of tax responsibilities.
"Perhaps the IRB could make the tax payment process more user-friendly by allowing the system to store receipts and documents related to tax claims," said Putra Business School economic analyst Associate Prof Dr Ahmed Razman Abdul Latiff when contacted.
"Additionally, offering rewards, such as tax discounts, to individuals who diligently pay their taxes every year could encourage compliance," he said.
UiTM's Business Management Faculty senior lecturer Mohamad Idham Md Razak praised the IRB's decision to collaborate with influencers, emphasising its potential to reach younger audiences.
"Leveraging the vast reach of celebrities and influencers is a smart move to educate the public, especially the younger generation, about tax compliance," he said.
Idham also proposed incorporating tax education into school and college curricula, providing foundational knowledge at an early stage.
He also suggested gamification as a potential tool, such as interactive apps that simplify the tax process and make it less intimidating for users.
To build public trust, Idham stressed the importance of transparency in how tax revenues were utilised.
"Openly sharing how tax revenues are used for public benefit could foster trust and encourage compliance," he said.
The government has projected a 5.5 per cent growth in revenue collection for 2025, targeting RM339.7 billion, or 16.3 per cent of the GDP. This includes a 6.6 per cent increase in direct tax collection to RM188.8 billion and a 9.8 per cent rise in indirect tax collection, amounting to RM70 billion.