No plan to merge Customs and LHDN into single tax agency, Dewan Rakyat told

KUALA LUMPUR: There are no plans to implement a single tax agency by corporatising and merging the Royal Malaysian Customs Department and the Inland Revenue Board (LHDN), says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also Finance Minister, said the government remains committed to improving governance in the national taxation system to be more efficient, transparent and compliance-friendly, in line with needs and international best practices.

“At present, there is no decision or plan to implement such an agency,” he said in a parliamentary written reply to Datuk Dr Nik Muhammad Zawawi Salleh (PN-Pasir Puteh).

“However, in efforts to enhance the governance of the national taxation system to be more efficient and capable of addressing revenue leakages, efforts are being intensified to strengthen cooperation between (LHDN and Customs), particularly in information sharing and enforcement.”

The Finance Ministry had been asked to state if the government planned to implement a single tax agency by corporatising and merging Customs and LHDN.

The Pasir Puteh MP also wanted to know if there are plans to coordinate the national taxation system under the National Single Window.

Anwar said one of the latest initiatives was e-invoicing, which is led by LHDN, but under which transaction data will be shared with Customs.

“Additionally, LHDN and Customs are also working together on enforcement activities related to cigarette smuggling,” he said.