It will include efforts to broaden Malaysia’s tax base, including taxing the shadow economy, improving tax compliance and administration towards helping boost tax collection

by ANIS HAZIM / pic by MUHD AMIN NAHARUL

THE Finance Ministry (MoF) is looking to table the Fiscal Responsibility Act in the upcoming Parliament session which is scheduled to begin on July 18.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the Bill will include efforts to broaden Malaysia’s tax base, including taxing the shadow economy and improving tax compliance as well as administration towards helping boost tax collection.

“This is crucial to replenish the nation’s coffers to support our developmental and longer-term reform agenda,” Tengku Zafrul said in his keynote address at the Malaysian Institute of Accountants (MIA) International Accountants Conference 2022 today.

On top of that, he said the government looks forward to continued collaboration with the MIA on the reform of the Accountants Act 1967 and its operationalisation.

“The government lauds MIA’s efforts to improve compliance and audit quality by revising the practice review process and rules.

“We also welcome MIA’s efforts to crack down on members associated with dubious accounting practices for good governance and public interest,” he said.

He noted that implementing these measures can boost the country’s reputation as a trusted, stable and preferred business and investment destination.

Highlighting the conference theme on the environmental, social and governance (ESG), the finance minister said the government is committed to strengthening sustainability-related financing, which complements the United Nations Sustainable Development Goals (SDGs).

“This is by coordinating initiatives and programmes inculcating the elements of ESG, which will help make Malaysia a sustainable financing hub,” he said.

Among the efforts will include the MoF tagging all programmes and projects under the development expenditure to the SDGs at the ministry and national level via the annual budgets.

Tengku Zafrul noted that the Environment and Water Ministry — in collaboration with MoF and Bursa Malaysia — will implement the Voluntary Carbon Market before transitioning to the Domestic Emissions Trading Scheme.