Response to Oral Question PL96
📖 Reading time: 2 minutes
📊 Word count: 356 words
YANG BERHORMAT AWANG MOHAMMAD BIN ABDULLAH @ LIM SWEE ANN​
QUESTION:
YANG BERHORMAT AWANG MOHAMMAD BIN ABDULLAH @ LIM SWEE ANN asked MINISTER OF FINANCE AND ECONOMY II to state the Ministry's plans in imposing some taxes deemed reasonable or necessary to increase the country's revenue and reduce the national deficit.
YANG BERHORMAT MINISTER OF FINANCE AND ECONOMY II​
ANSWER:
Thank you, Yang Berhormat Yang Di-Pertua, Thank you for the question from Your Honourable Member regarding the Government's efforts to increase the country’s revenue.
Globally, taxes are one of the main ways to generate Government revenue to finance operations and services to its citizens and residents, such as road infrastructure development, hospitals, schools, national defense, and social security programs. There are various types of taxes imposed by countries such as income tax, sales tax, value-added tax (VAT), property tax, excise duty, and others.
For this country, efforts to increase Government revenue, whether in the form of tax imposition or charges, are not only limited to the Ministry of Finance and Economy but also involve each Ministry and Government Department playing a significant role in enhancing Government income.
The existing tax policy currently, whether from indirect taxes such as stamp duties, excise/customs taxes, land taxes, building taxes, or direct taxes such as income tax only imposed on business companies registered under the Companies Act, Chapter 39, is not sufficient to finance Government expenditure, especially in supporting subsidy expenditures or in enhancing infrastructure development and social programs, which are fundamental for the country's prosperity. At the same time, the Ministry of Finance and Economy continuously implements initiatives to modernize existing tax policies by improving tax legislative administration and reviewing existing tax incentives. Some proposals have also been put forward by other Government agencies.
However, the Government needs to assess that any introduced proposal fosters growth, ensures continuing stability in advancing the national economy, and most importantly, does not affect the low-income groups. It is hoped that any new policy introduced will receive support, in collectively addressing the national deficit and providing quality infrastructure and services for the comfort and well-being of all citizens and residents in this country.
Thank you. Thank you, Yang Berhormat Yang Di-Pertua.
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