LHDN expects rise in civil servant taxpayers following salary adjustment

CYBERJAYA: The Inland Revenue Board (LHDN) expects taxpayers among civil servants to increase following the recent announcement of the government's salary adjustments by Prime Minister Datuk Seri Anwar Ibrahim.

Its chief executive officer, Datuk Dr Abu Tariq Jamaluddin said tax deductions will be based on taxable income.

"If the salary is above the set threshold, of course, there will be a tax effect from the income or increase received," he told the media after officiating the Ops Metro 2024 ceremony here today.

"Of course, it depends on the rebate for those who are eligble to claim and so on."

Last Friday, Anwar announced a 15% pay hike for civil servants under the management and professional category and a 7% salary increase for civil servants in the upper management category under the Public Service Remuneration System.

The adjustments will be implemented in two phases namely phase one beginning on Dec 1 this year whereas phase two will commence on Jan 1, 2026.

Meanwhile, regarding Ops Metro, Abu Tariq said it is a collaboration between LHDN and the Royal Malaysian Customs Department with the objective of increasing the level of tax compliance among taxpayers as a whole in terms of registering income tax files, sending tax forms, tax reporting and tax payments.

He said it is also a short-term strategy in expanding the tax revenue base, reducing tax leakages, and improving the efficiency of tax management which will contribute to the sustainability of national revenue collection.

"I understand that in this operation, the JKDM will focus on business census visit activities that aim to expand the taxation base and include identifying potential service providers to be registered.

"For the LHDN, its focus is on identifying taxpayers who run a 'cash economy' and foreign nationals who run businesses," he also said.

He added that Ops Metro involves five main taxation operational activities namely audits; investigation; collection; and business and legal census visits to be conducted simultaneously in the Klang Valley.

About 1,000 LHDN and JKDM personnel are involved in the four-day Ops Metro which began today.

-- BERNAMA

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