e-Invoice Tackles Shadow Economy; Impact Being Assessed - Lim

KUALA LUMPUR, Dec 16 (Bernama) -- The government has taken several measures to address the shadow economy as part of its efforts to boost national revenue, including the implementation of the e-invoicing system, which started in 2024.

Deputy Finance Minister Lim Hui Ying said the implementation of e-invoicing aims to strengthen a more progressive administration and accelerate the digitalisation of the tax system, while also helping to curb shadow economy activities.

“However, for the time being, the government has not been able to assess the impact on the shadow economy because the e-invoice has not been fully launched,” she said during the question-and-answer session in the Dewan Negara today.

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She said this in response to a supplementary question from Senator Rita Sarimah Anak Patrick Insol on the government’s efforts to address the shadow economy to ensure that the nation’s revenue increases.

Lim said continuous monitoring will be carried out to assess the effectiveness of the initiative in broadening the tax base and increasing national revenue in the future.

Meanwhile, in her reply to a question from Senator Datuk Salehuddin Saidin on proposals to address cost of living issues based on locality, she said the government is currently focusing on leveraging existing data and enhancing information-sharing among agencies to improve the effectiveness of cost of living-related policies.

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She said any improvements to the cost of living assessment framework would continue to be evaluated from time to time.

“The government takes note of the suggestions which have been put forward. At the same time, the targeted subsidy programmes that have been implemented take into account overall income and are not based solely on locality, to ensure assistance reaches those who truly need it,” she added.

-- BERNAMA