REGULATE SHADOW ECONOMY, IMPROVE ADMINISTRATION TO BOOST TAX COLLECTION - MIA
KUALA LUMPUR, April 20 -- The government can raise tax collection without resorting to additional taxes through the regulation of the shadow economy and improved tax administration, said Malaysian Institute of Accountants (MIA) president Dr Veerinderjeet Singh.
He said that by addressing tax non-compliance and systemic inefficiencies, the government need not implement new taxes such as capital gains tax and wealth tax or to reintroduce the Goods and Services Tax.
"No other taxes should be implemented until we reach the status of a high income and highly developed nation,” he said during a panel session at the recent Malaysian Tax Conference 2021 jointly organised by the MIA and the Malaysian Association of Tax Accountants.
Veerinderjeet said the shadow economy or informal economy could be equivalent to about a third of Malaysia’s Gross Domestic Product; hence, regulating it could generate hundreds of millions in tax revenue.
However, he said, this would require stronger enforcement to boost tax compliance.
Veerinderjeet said transforming tax administration through digitalisation and technology adoption, such as the application of data analytics, is imperative to enhance tax operations and enforcement.
-- BERNAMA
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