Malaysia’s Tax Body Bets on New Revenue Ecosystem Amid GST Pause

Malaysia’s Inland Revenue Board is relying on the start of electronic invoicing next year to narrow the country’s tax gap and widen the revenue base even as the government waits on implementing a new consumption tax.

The e-invoicing initiative, slated to start with 4,000 businesses in June 2024, will help tackle leakages in taxes arising out of the shadow economy. It will also lay the ground for the likely re-introduction of the goods and services tax in the future, according to IRB Chief Executive Officer Mohd Nizom Sairi.