The government risks losing support from Chinese voters if concerns over e-invoicing, higher SST and aggressive tax enforcement are not addressed, former economy minister Rafizi Ramli warned.
He said public anger over tax-related issues is often misdirected at him and the Economy Ministry, even though such matters fall under the Finance Ministry’s purview.
Rafizi noted that small and medium enterprises particularly in the Chinese business community have been under growing strain over the past two to three years, citing unreasonable tax interpretations, higher payments, and delayed refunds when overpayments occur.
“On paper, the government celebrates higher tax collection; on the ground, taxpayers feel like they’re being squeezed,” he said, adding that rhetoric about targeting the ultra-rich rings hollow when long-time cronies appear unaffected.
He said SME owners increasingly feel like “political footballs”, and warned that unless tax administration is seen as fair and reasonable, declining confidence among Chinese voters should not be surprising.
