LHDN, Customs asked to find 'creative' ways to tax black economy

KUALA TERENGGANU, Dec 28 (Bernama) -- The government has asked the Inland Revenue Board of Malaysia (LHDN) and the Royal Customs Department (JKDM) to find more creative ways to increase their tax collection without imposing new taxes on the people.

Deputy Finance Minister Datuk Seri Ahmad Maslan has suggested that the two agencies monitor the black economy for more tax collection as the sector is estimated to comprise 30 per cent of the gross domestic product (GDP).

“The black economy comprises people who evade tax or do not pay the appropriate amount of taxes

“If through these creative efforts, the black economy can be brought down to 10 per cent of GDP, the government would get tens of billions (of ringgit) in taxes, without having to impose new taxes,” he told reporters after making an official visit to the LHDN office here.

However, Ahmad said the two agencies have not been given any targets to achieve this although the government is formulating policies to reduce black economy activities that have been spreading since the abolishment of the Goods and Services Tax (GST). 

 -- BERNAMA