MCA President and Ayer Hitam MP Datuk Seri Dr Wee Ka Siong called for sweeping structural reforms to Inland Revenue Board (LHDN), arguing the tax authority should be made independent of executive control and answer directly to Parliament.
Debating the 13th Malaysia Plan (RMK13) in the Dewan Rakyat, Wee warned against LHDN being used as a political tool, stating, “LHDN cannot continue to operate under the direct control of the Finance Minister, as is the case now and previously.”
“I propose that LHDN be established as an independent statutory body under Parliament, to ensure it remains free from political influence and government fiscal pressure,” he said.
Wee pointed to models from developed economies to support his proposal.
“In the United States, the Internal Revenue Service (IRS) is overseen directly by Congress and not under the authority of the President. In the United Kingdom, His Majesty’s Revenue and Customs (HMRC) operates independently with its own board. Likewise, the Australian Taxation Office (ATO) is answerable to Parliament, not the executive,” he explained.
The Ayer Hitam MP also highlighted the impact of tax refund delays on small and medium-sized enterprises (SMEs), describing the situation as “tantamount to the government borrowing citizens’ money without interest.”
“Of late, there have been growing complaints from SMEs that tax refunds are taking far too long—sometimes years. This is unjust and stifles business,” he added, suggesting that powers to interpret tax, approve exemptions, and manage appeals be placed under a neutral body.
Wee’s remarks sparked lively debate in the House, especially after Deputy Speaker Alice Lau Kiong Yien cautioned him for directing his speech solely towards the opposition bench, citing Standing Order 31(1), which requires members to address the Chair.
This prompted DAP MP Chong Zhemin (PH–Kampar) to interject with a jibe:
“The Ayer Hitam MP is speaking in the direction of the opposition. He might as well join them. Join PAS – PAS would welcome MCA.”
The remark drew backlash from Datuk Seri Dr Ronald Kiandee (PN–Beluran), who defended Wee, saying, “He’s looking this way because he has support from here. He can’t look that way because DAP is attacking him.”
Tensions further escalated as Wee clashed with Chong over accusations that the government was involved in a so-called “tax robbery.”
Wee demanded a retraction, saying, “Withdraw that. It’s rhetorical nonsense. Every time I speak, that’s the kind of behaviour I face.”
The RMK13, outlining Malaysia’s strategic development goals from 2026 to 2030, was tabled by Prime Minister Datuk Seri Anwar Ibrahim last Thursday. - August 5, 2025
