Senate Passes Tax Collection Measures Bill 2025

KUALA LUMPUR, Dec 18 (Bernama) -- The Senate today passed the Measures for the Collection, Administration and Enforcement of Tax Bill 2025 to strengthen the country’s taxation system. 

The bill includes amendments to five taxation acts, namely the Income Tax Act 1967, the Real Property Gains Tax Act 1976, the Stamp Act 1949, the Labuan Business Activity Tax Act 1990 and the Petroleum (Income Tax) Act 1967. 

A total of six senators participated in the debate and submitted views and suggestions related to the bill, including the digitalisation of tax administration, stamp duty, the issuance of guidelines by Inland Revenue Board (IRB) director-general, excess tax refunds, and efforts to improve revenue governance.

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Commenting on the digitalisation of tax administration, Deputy Finance Minister Liew Chin Tong said the amendment to the act, which makes it mandatory to submit tax information or tax return forms via electronic medium, aims to reduce taxpayer compliance costs.

The measure would save time on filing via a digital platform and simplify and speed up the receipt of documents. 

“It also provides a centralised and secure medium for the purpose of data delivery. This measure supports the government’s efforts in modernising public services, in line with the aspirations of the National Digitalisation Policy,” he said when winding up the debate on the bill in the Dewan Negara today.

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Liew said that following the implementation of the Real Property Gains Tax (CKHT) Self-Assessment System, the government will also implement the Stamp Duty Self-Assessment System starting Jan 1, 2026, in line with international practices in countries such as Ireland, Singapore, the United Kingdom and Australia.

Based on Malaysia’s experience in implementing a self-assessment system for other taxes since 2001, he said the system would not only provide convenience to duty payers, but would also improve the efficiency and effectiveness of stamp duty collection administration through the use of a digital platform.

On the issue of excess income tax refunds raised by Senator Tan Sri Low Kian Chuan and Senator Roderick Wong Siew Lead, Liew said the government is committed to speeding up the refund process every year.

For the year 2025, up to Nov 30, the IRB has made tax refunds of RM14.55 billion involving 3.47 million cases, an increase of 17.5 per cent compared to RM12.39 billion involving 2.71 million cases in 2024.

To strengthen management of excess tax refunds, he said the IRB had also formulated a strategy to ensure that government refund allocations were distributed fairly and in an orderly manner.

On revenue governance, Liew said Budget 2026 emphasises prudent and transparent fiscal management to ensure that national revenue is utilised by the people via targeted assistance and inclusive strategic investments, with a focus on driving economic growth and equitable wealth distribution.

He said the government would continue to strengthen the country’s revenue generation through the fiscal reform agenda and address revenue leakage by increasing tax compliance and implementing more effective law enforcement.

The Senate meeting was then adjourned sine die.

-- BERNAMA