Budget 2022 should address important aspects of tax revenue collection such as plugging leakages and good management of tax revenue collection including timely refund of tax, says Chartered Tax Institute Malaysia President Farah Rosley in a Pre-Budget 2022 statement.
CITM says there is a need to continue monitoring tax collection and ensuring equitable treatment of tax. Good administration of taxes should continue and improvements made to ensure the tax system is transparent and easy to be implemented. “Use of new data and analytics could indeed support the tax administration initiative in managing tax leakages,” CITM says.
An effective tax administration and good revenue collection mechanism will enhance government performance. “There is a need to develop new approaches to increase voluntary compliance, manage non-compliance, minimise compliance costs and enhance overall trust in the tax system.
“Timely administrative support to taxpayers including timely refund of tax collected will build trust in the tax system,” it says.
CITM says that various economic stimulus packages being announced means more revenue is needed to sustain the stimulus packages. There is a bigger need to ensure businesses continue to be supported during this recovery period.
