KUALA LUMPUR: Existing legislation and administrative procedures in the country are sufficient to curb embezzlement and misuse of the new and existing tax structure implementation, the Dewan Rakyat heard today.

Deputy Finance Minister Lim Hui Ying said the government will also monitor the implementation of taxes in the country from time to time to ensure it can be carried out effectively.

"In line with the 2024 Budget, the government will also implement the e-invoice system in stages this year to enable more effective detection of tax violations.

"The ministry will also periodically monitor (the implementation of the system) and ensure that it can be carried out appropriately," she said during the minister's question time in Dewan Rakyat, today.

Lim said this in response to a supplementary question from Muhammad Ismi Mat Taib (PN-Parit) who enquired about measures carried out by the government to curb potential misuse of tax declarations in the implementation of existing and new tax structures.

It was previously reported that Prime Minister Datuk Seri Anwar Ibrahim during the 2024 Budget tabling had announced that the government will enforce the e-invoicing system on a mandatory basis for taxpayers with an annual income exceeding RM100 million starting August, this year.

Anwar said the e-invoicing system for taxpayers in different income brackets will be rolled out gradually with a comprehensive implementation by July 1 next year.

He also announced the government's plan for the expansion of the tax identification number to support the implementation of e-invoices.

On the same matter, Lim added that the government will undertake several measures through the implementation of a medium-term fiscal strategy to ensure that future tax planning is more systematic and consistent with the expenditure system.

She added that the government will also remain committed to fiscal consolidation in the medium term to ensure fiscal sustainability can be achieved through sustainable income generation as well as efficiency in expenditure.

"The government is committed and has taken steps to diversify and enhance the sources of national income, including providing tax incentives, improving and reviewing the tax legislative structure as well as expanding the tax base."

Meanwhile, she added that the government's income in 2024 is expected to increase to RM312.159 billion after taking into account the tax measures implemented under the 2024 Budget, higher tax collections and stronger economic growth.

"Tax revenue remains the main contributor, accounting for 79.5 per cent of total revenue or 12.57 per cent of gross domestic product (GDP), while non-tax revenue represents 20.5 per cent or 3.2 per cent of GDP.

"Revenue collection will be supported by strong economic growth along with measures taken to further enhance revenue mobilisation through expanding the tax base and improving tax compliance and transparency."

https://www.nst.com.my/news/nation/2024/03/1031111/existing-laws sufficient-curb-violations-existing-and-new-tax-structures