During the KPMG Tax and Business Summit, Johan Mahmood Merican, Director for National Budget Office of the Ministry of Finance, said that the government is cautiously optimistic on the gross domestic product (GDP) forecast of 4.8 per cent next year with some measures are in place to contain effects if the global economy worsens.
According to Datuk Tan Sim Kiat, KPMG’s Advisor for Indirect Tax, the government together with the Royal Malaysian Customs Department should continue to strengthen enforcement on liquor and tobacco products to prevent leakage. He said the government was currently losing substantial tax revenue from the two segments and suggested that the authorities go after companies that did not register for income tax based on the previous Goods and Services Tax (GST) database.
“During the GST regime, more than 470,000 companies registered for it. Unfortunately, the number of companies that registered for income tax is much lower,” he added.