SEPANG, March 2 ― Prime Minister Datuk Seri Anwar Ibrahim emphasized today that Malaysia’s tax base remains low, accounting for only 11.2 percent of the country’s gross domestic product (GDP), compared to Singapore’s 12.6 percent and Thailand’s 16.4 percent. Anwar, who also serves as the finance minister, revealed that out of 1.5 million registered companies in Malaysia, only 435,000 were actively paying taxes, constituting less than a third of the total. Highlighting the importance of effective tax management and collection, Anwar stressed the need for the Inland Revenue Board (LHDN) to diligently carry out its tax collection functions.
He commended the LHDN for achieving its highest-ever tax collection of RM183.34 billion last year, a 4.49 percent improvement from the previous record. Anwar underscored the importance of combating corruption and urged the LHDN to scrutinize individuals with unexplained wealth, irrespective of their positions or political affiliations. Anwar’s remarks come as Malaysia implements an increased service tax, raised from 6 to 8 percent under Budget 2024, with expanded coverage aimed at streamlining taxation, although exempting certain services like food and beverage, telecommunications, and vehicle parking.
