THE State Inland Revenue Board (Lembaga Hasil Dalam Negeri or LHDN) led by its director Halijah Bulat paid a courtesy visit to Chief Minister Chow Kon Yeow at Komtar this evening.
Accompanying Halijah were her three directors Haji Mohd Hamzan Mamat (LHDN director for Penang Island), Chakngari@ Yusof Daud (LHDN director for Bukit Mertajam) and Aziz Din (LHDN Penang director for Investigations).
Halijah briefed Chow on the mechanism and figures in the collection of taxes in the state and revealed that tax compliance in Penang is considered high compared elsewhere and that the construction industry contributes the highest amount of tax in Penang.
The chief minister also commented that Penang has a matured ecosystem especially for the E&E industry and that explains the compliance level.
Chow also raised the matter in which a multi-national corporation (MNC) recently approached him on the issue of tax refund which Halijah replied that taxes paid by foreign entities are handled by the LHDN at federal level in Kuala Lumpur.
On the issue of taxes liable to be paid by hawkers and petty traders asked by Chow, she replied that the LHDN adheres to the principle of flexibility and that her department usually tries to reach an understanding with them to pay a reasonable amount of tax.
“When it comes to hawkers, it’s a bit difficult because they don’t have proper records but we in LHDN will negotiate with them. We are flexible when it comes to hawkers and petty traders,” Halijah said to Chow.
Halijah, however, noted that those who are single and earning RM3,500 a month are liable to pay income tax.
Story by Victor Seow
Pix by Alvie Cheng