Clarity needed in tax policy: Yong
Published on: Wed, Jun 18, 2025 Text Size: Yong, a Nominated Assemblyman and former Chief Minister, said recent announcements on new taxes, suspensions and postponements of policies have left Malaysians and business owners bewildered. Kota Kinabalu: Sabah Progressive Party President Datuk Seri Yong Teck Lee called on the Government to pause further tax changes, engage meaningfully with stakeholders and restore clarity, affordability and ease of collection in order to stabilise the economy and rebuild public confidence. He also urged the Inland Revenue Board to desist from enforcement on the new taxes until rates and procedures are clarified, taxpayers can afford them and collection is effective rather than punitive, as harsh enforcement risks destroying businesses and livelihoods.
Advertisement Yong, a Nominated Assemblyman and former Chief Minister, said recent announcements on new taxes, suspensions and postponements of policies have left Malaysians and business owners bewildered. 'It is observed that the recently announced sales and service tax (SST) is imposed inconsistently even on the same category of products. 'For example, local and imported avocados are subject to different rates, creating confusion for both consumers and businesses,' he said. Meanwhile, tax enforcement actions are pressing forward despite the unclear guidelines and the current weak economic conditions. Yong said the first essential principle of any proper tax system is that rules must be clear enough for people and businesses to understand their obligations without confusion. 'A second foundational requirement is that tax rates be set at levels taxpayers can reasonably afford, especially in a fragile economy where many are already struggling. 'A third guiding tenet is that the Government's collection process must be simple and predictable, avoiding enforcement actions that punish those who genuinely wish to comply,' he added. Yong said the ongoing shifts in SST rules, e-invoicing deadlines, fuel subsidy adjustments and stamp duty regulations fail to meet these three core standards. 'This persistent uncertainty undermines trust, deters investment and deepens the hardship faced by struggling families and small enterprises.' * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
25 minutes ago
- New Straits Times
Govt weighs unexplained weath order, no green light yet: Amir Hamzah
KUALA LUMPUR: The government is not ready to make any final decision regarding the implementation of the Unexplained Wealth Order (UWO), although he acknowledges that the proposal is being seriously studied. Finance Minister II Datuk Seri Amir Hamzah Azizan said the proposal is one of the ideas that deserves attention but requires thorough research before any action is taken. "We cannot rush into implementing it. I have received the proposal to assess the implementation of the UWO, and we will look into it seriously. "However, for now, the government is not ready to make a final decision," he said at the 2025 National Tax Conference. Recently, former Klang MP Charles Santiago called on the government to introduce legislation enabling the issuance of UWOs, highlighting it as a necessary tool to combat illicit wealth accumulation and systemic corruption among the elite. Amir Hamzah said any new policy, including UWO, must go through a research and in-depth understanding process to evaluate its implications on the economy and the public at large. "We do not want to implement a policy that ultimately brings negative or unintended consequences. What's important is to fully understand the implications before making any decision," he added. On the implementation of tax on high-value goods, he said the government always adopts a targeted approach to ensure that the tax burden falls only on those who can afford it. "For example, when we expanded the Sales and Services Tax (SST), we carefully examined which segments could bear the tax burden. Basic goods widely used by the public are exempted from SST, while tax is only imposed on non-essential or luxury items." He added that in the healthcare sector, taxes are imposed on foreigners receiving treatment in Malaysia, while in the education sector, tax is only applied to high-income groups above the age threshold of 60.
New Straits Times
an hour ago
- New Straits Times
Govt considers pension-style EPF withdrawals: Amir Hamzah
KUALA LUMPUR: The government is studying a proposal to replace the current lump sum withdrawal system under the Employees Provident Fund (EPF) with a monthly pension-style payout, as part of efforts to ensure more sustainable retirement savings for Malaysians. Finance Minister II Datuk Seri Amir Hamzah Azizan said the new system may initially apply only to new EPF members, while existing contributors could be given the option to transition to the revised structure voluntarily. He added that the idea, aimed at preventing contributors from depleting their savings too quickly, is being refined and has already been addressed by the Economic Planning Unit. "The main idea is to develop a more sustainable system such as a pension system where savings are not withdrawn in one lump sum, but paid out monthly," he said at the 2025 National Tax Conference her today. Amir Hamzah noted that many EPF contributors tend to exhaust their savings soon after retirement, which often leads to financial difficulties in their later years. As such, the government is taking a cautious and comprehensive approach in evaluating the long-term implications of the proposed reform. "This is to replace the current lump sum withdrawal system. If the proposal is accepted, its implementation will be practical and phased," he added. The government's broader objective is to build a more resilient and inclusive retirement framework that ensures long-term financial security for all Malaysians, he added.
Daily Express
an hour ago
- Daily Express
LDP slams PTPTN waiver tactic as
Published on: Tuesday, August 05, 2025 Published on: Tue, Aug 05, 2025 Text Size: KOTA KINABALU: The Liberal Democratic Party (LDP) has denounced the use of PTPTN loan forgiveness as an election promise, calling it a reckless tactic that misleads voters and threatens Malaysia's education financing system. LDP warned that such populist pledges erode financial discipline, risk collapsing PTPTN's revolving fund, and promote strategic default among borrowers. The party also criticised the Sabah-targeted proposal as divisive and lacking a clear fiscal model. 'Education policy must be rooted in long-term fairness and fiscal responsibility not exploited for political gain,' the party said. They stresssed that PTPTN is a federal agency and state-level promises to cancel loans overstep constitutional bounds. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
