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THE government has no plans to corporatise and merge the Inland Revenue Board (IRB) and the Royal Malaysian Customs Department into a single tax agency, Prime Minister Datuk Seri Anwar Ibrahim confirmed.
“There is no decision or plan to implement such an agency,” said Anwar, who also serves as Finance Minister, in a written parliamentary reply to Datuk Dr Nik Muhammad Zawawi Salleh (PN–Pasir Puteh) today.
While dismissing the idea of a merger, Anwar reaffirmed the government’s commitment to enhancing governance within the national taxation system to ensure greater efficiency, transparency, and compliance, in line with evolving needs and international best practices.
“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,” he said.
In response to a further query on whether the government plans to streamline taxation through the National Single Window platform, Anwar pointed to ongoing collaboration initiatives.
He highlighted the introduction of e-invoicing, led by LHDN, through which transaction data will also be shared with Customs to improve oversight and reduce leakage.
“Additionally, LHDN and Customs are also working together on enforcement activities related to cigarette smuggling,” he added.
The Prime Minister’s remarks underscore a preference for inter-agency coordination rather than institutional consolidation as a means to strengthen Malaysia’s tax administration. - August 11, 2025
