MCCM urges govt to review proposed increase in penalty rate for tax evasion

KUALA LUMPUR: The Malay Chamber of Commerce Malaysia ( MCCM) hopes the government will review the proposed increase in penalty rate to 100 per cent for tax evasion and inaccurate tax reporting among taxpayers.

In the Budget 2018 wish list, MCCM Vice- President, Norsyahrin Hamidon, said a review was needed to prevent entrepreneurs especially from being burdened by a high penalty rate.

Earlier, the Inland Revenue Board Malaysia had announced the increase in penalty rate from 45 per cent to 100 per cent effective January 2018, following the discovery of cases involving leakages in income tax payments by companies which had generated income ranging from hundreds of millions to billions of ringgit.

“We hope the proposal would be put on hold and the 45 per cent penalty rate be maintained in view of the uncertainties in the economy.

“This would indirectly help entrepreneurs carry on their businesses amid a gloomy economy,” he said to reporters at the briefing on the forum titled ‘National Halal Business Forum: Halal Integrity, Challenges and Opportunities’ here yesterday.

Norsyahrin said the forum, organised by MCCM, would be held in Terengganu from Oct 23-24.

“It aims to attract some 200 participants statewide. Todate, we have already received 180 registrations and expect to achieve the target as the issues that will be discussed at the forum are relevant to the development of the halal industry,” he said. — Bernama