Strategic tax compliance effort targets inactive taxpayers in KK
KOTA KINABALU: A joint verification operation targeting inactive taxpayers in Sabah's capital has uncovered 380 individuals still running businesses despite being listed as non-active in tax records.
The four-day exercise, held under the Integrated Revenue Programme with Kota Kinabalu City Hall (DBKK), was a joint initiative between the Inland Revenue Board (LHDN) and DBKK, focusing on commercial areas such as Anjung Kinabalu, Anjung Senja and Todak Waterfront.
LHDN chief executive officer Datuk Dr Abu Tariq Jamaluddin said the initiative aimed to identify inactive taxpayers who continued to operate businesses — a move to boost compliance and ensure accurate tax records.
'This strategic programme is not only about enhancing revenue collection but also strengthening compliance and ensuring our taxpayer records are accurate,' he said at the programme's closing ceremony on Thursday (May 29).
Abu Tariq added that the programme utilised GeoHasil, a geo-location-based application, to streamline on-the-ground verification efforts. Business licence data provided by DBKK was also crucial in matching and confirming taxpayer status.
Among the types of businesses identified were fresh produce vendors, food stalls, handicraft sellers, dry food traders, and wholesale market operators.
He said the findings revealed untapped revenue potential and underscored the importance of shared, up-to-date data to support long-term compliance efforts.
Kota Kinabalu Mayor Datuk Seri Dr Sabin Samitah, who also spoke at the ceremony, said DBKK was proud to play a proactive role in the initiative and hoped it would serve as a model for other local authorities nationwide.
'This programme reflects a meaningful collaboration between federal and local government, and we hope other local authorities will take similar steps,' he said.
Sabin stressed that a fair and efficient tax system was essential for sustainable national development, enabling the government to deliver key services such as infrastructure, education, and healthcare.
'Through this joint effort, we're building trust and encouraging voluntary compliance while safeguarding national revenue,' he added.
Both officials expressed hope that the collaboration will serve as a benchmark for other local councils aiming to strengthen tax governance through data sharing and coordinated verification exercises.
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