KUALA LUMPUR – Does the government have a contingency plan if tax collections fail to meet its projection, Datuk Seri Saifuddin Nasution Ismail (Kulim Bandar Baru-PH) asked the Finance Ministry.
He said the government has a priority to fund payment for salaries, pensions, subsidies, and debts even though income is a concern for the country.
“I want to ask the Finance Ministry, if the projection for tax collections is not realised, are there contingency plans in place?” he said while debating Budget 2022 in the Dewan Rakyat today.
On corporate tax, he added that there are multinational corporations that conduct transfer pricing to avoid paying taxes.
He said tax collection can be increased if a method is found to ensure large companies do not practice tax avoidance.
On e-commerce transactions, he said Statistics Department data saw an RM84 billion increase in the first quarter of 2021 and is expected to rise to a whopping RM878 billion next year.
“These commercial activities operate at a very high volume. The government should impose taxes on this segment,” he said, adding that the cloud computing and software services sector are ripe for tax collections.
Meanwhile, he slammed Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor’s claim for lease payments on Penang, saying there is no basis for such a demand.
“In my 27 years in politics, I have never come across a character like him (Sanusi). In his position, he should talk about facts. The question is, is there a 1786 agreement justifying the claim?”
Quoting Prof Datuk Ahmad Murad Merican, Saifuddin said there is no proof of any such agreement on lease payments.
Seeing that the main issue is more of Kedah looking for revenue sources, he proposed that the state government approach the Environment and Water Ministry for reasonable payments on water supply.
Aside from Kedah, Penang and Perlis draw water from the water catchment in the Ulu Muda Forest Reserve. – The Vibes, November 1, 2021
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