A TOTAL of RM1.29bil in undeclared taxes has been received by the government through the special voluntary disclosure programme (SVDP) 2.0 under the Inland Revenue Board (LHDN), says Finance Minister II Datuk Seri Amir Hamzah Azizan.

Out of the RM1.29bil, the LHDN managed to recover RM512.6mil in taxes, added Amir.

The SVDP programme – which provided individuals or businesses to report any incorrect and/or undisclosed income to the tax authority, with a 10% or 15% discount applied to penalties on additional taxes disclosed by participants – was implemented from June 6 last year till May 31 this year.

During the same period, Amir said the LHDN approved 141,406 voluntary disclosures, involving 102,572 individuals and 27,707 companies while the remaining involved other organisations.

“This programme has facilitated taxpayers to pay their taxes either in instalments or in full.

“Applications received by LHDN and the Customs Department have shown encouraging support from taxpayers,” said Amir during Minister Question Time.

For the Customs Department, Amir said it received 1,542 voluntary disclosures from individual and company taxpayers, involving RM229mil in taxes.

Amir said taxes collected under SVDP 2.0 would be placed into the government’s consolidated fund, to be used to cover national expenses approved in Parliament through the annual budget.

“This includes public development projects such as schools, universities, hospitals and roads,” he said in response to Datuk Mohd Isam Mohd Isa (BN-Tampin), who asked about taxes collected under the programme.

To a question by Datuk Mohd Suhaimi Abdullah (PN-Langkawi) on whether the government plans to reintroduce the Goods and Services Tax (GST), Amir responded in the negative, adding that this was because it is a form of broad-based consumption tax.

“It is not the right time to reintroduce the GST, as the public, especially those with low income, are facing challenges with the cost of living.

“Therefore, the government will prioritise improving the existing tax system and introduce a tax system that does not affect vulnerable groups before evaluating the need to introduce a new consumption tax such as the GST,” said Amir.

https://www.thestar.com.my/news/nation/2024/07/17/voluntary-disclosure-pays-off-with-rm512mil-recovered-in-taxes