BDO Malaysia urges budget to cut tax complexity and lower business costs
BDO Malaysia's tax adviser David Lai calls for simpler tax rules in Budget 2027 to reduce compliance costs and give firms more certainty.
In an email interview, David Lai of BDO Malaysia said Budget 2027 should focus on simplifying tax rules to cut compliance burdens and improve business confidence. He proposes that the SST system incorporate selected GST mechanisms that reduce cascading without merely copying GST mechanics, and that B2B service tax exemptions be further streamlined. Lai highlights the need for e-invoicing enhancements, such as fewer data fields for low-value transactions and support for micro-enterprises, to encourage voluntary adoption.
He points out that the outdated Stamp Act 1949 requires clearer language to prevent disputes, especially as self-assessment rolls out. Finally, Lai calls for a review of the interaction between CGT and RPGT to avoid double taxation of property-related transactions, suggesting targeted relief where overlaps occur.
