IRB COLLECTS RM512.6 MLN THROUGH SVDP 2.0

KUALA LUMPUR, July 16 (Bernama) -- The Inland Revenue Board (IRB) has collected RM512.6 million out of the total tax assessment of RM1.29 billion during the Special Voluntary Disclosure Programme (SVDP) 2.0, which ran from June 6, 2023, to May 31, 2024.

Finance Minister II Datuk Seri Amir Hamzah Azizan said that the assessment surpassed the initial target of RM1 billion. 

“During the period, the IRB approved 141,406 voluntary disclosure applications, including 102,572 individual taxpayer cases, 27,707 company cases, and other categories such as organisations.

"This amount involves reported tax assessments totalling RM1.29 billion," he said during the Minister's Question Time in the Dewan Rakyat today.

He said this in reply to a question from Datuk Mohd Isam Mohd Isa (BN-Tampin), who inquired about the effectiveness of SVDP 2.0, the number of participants, and the amount collected that could be used for the people’s benefit.

Meanwhile, the Royal Malaysian Customs Department (RMCD) received a total of 1,542 voluntary disclosure applications from individual and corporate taxpayers, with the declared tax amounting to RM229 million.

This amount also exceeded the target of 500 applications with a tax collection value of RM200 million, said Amir Hamzah.

SVDP 2.0 is a programme implemented by IRB and RMCD, offering a zero per cent penalty rate for voluntary disclosures made by individuals and companies within the specified period.

“The one-year period for SVDP 2.0 is sufficient to give taxpayers the opportunity to report income or tax liabilities for past sales or service transactions.

“At this point, the government does not plan to extend this programme. Even though SVDP 2.0 will not be continued, both IRB and RMCD have devised strategies to boost tax compliance,” he said.

The minister said that RMCD has prepared a new audit strategy for 2024-2026 to prevent and detect revenue leakage.

This strategy will enhance business entities’ compliance with indirect tax laws through a comprehensive and customer-friendly audit approach, namely the Compliance Verification Audit.

In his reply to a supplementary question from Datuk Mohd Suhaimi Abdullah (PN-Langkawi) on the reintroduction of the Goods and Services Tax (GST), Amir Hamzah said there have been no proposals for the reimplementation of the tax.

“The government is not planning to reimplement the GST yet because it is a broad-based consumption tax, and thus, it is not the right time to reintroduce it as some people, especially those with low incomes, are facing cost of living challenges.

“Therefore, the government will continue to prioritise improving the existing tax system and introducing taxation that does not affect the vulnerable groups before evaluating the need to introduce a new consumption tax like GST,” he said

-- BERNAMA