KOTA KINABALU: Liberal Democratic Party (LDP) has raised concerns over the Inland Revenue Board’s proposal to tax surplus funds held by charitable organisations, calling it a setback for public welfare.
LDP Women’s chief Glenna Wong (pic) said such a move risks undermining public trust and could affect essential aid programmes that rely on donations and fundraisers to support vulnerable communities.
She emphasised that temporary surpluses are often due to scheduling or administrative delays, and warned that taxing these funds could disrupt their intended use.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});Wong added that smaller grassroots charities - particularly in Sabah and Sarawak - may struggle to cope with complex tax compliance, potentially forcing them to close.
The party called on State Governments to step in and protect local non-profits, while urging the federal government to prioritise support over taxation to uphold the spirit of public service.
