Govt mulls single tax agency to streamline revenue collection
KUALA LUMPUR: The government is considering streamlining national revenue administration through a unified collection system, including the proposed establishment of a Single Tax Agency (STA).
The Malaysian government is contemplating the establishment of a unified revenue collection system, known as the Single Tax Agency (STA), to streamline national tax administration. This proposal, which was discussed at an enforcement and tax compliance meeting in June, involves merging the tax collection functions of the Customs Department and the Inland Revenue Board (IRB).
Currently, these two agencies operate under separate frameworks, leading to overlapping functions, increased administrative costs, and a heavier compliance burden for taxpayers. By integrating their operations, the government aims to improve collection efficiency, reduce costs, and simplify the compliance process for businesses.
The World Bank also suggested this proposal in its Malaysia Economic Monitor June 2015 — Transforming Urban Transport report, advocating for a more streamlined approach to revenue administration to minimize operational overlaps and administrative costs. However, the idea is still under consideration, and no final decision has been made regarding the restructuring of the two agencies.
The Finance Ministry is currently reviewing the proposal, and if approved, implementation could proceed without a specific timeline set for a final decision.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
