KUALA LUMPUR, Dec 4 — The wholesale and retail trade sector has been identified as the sector with the highest risk of revenue leakage since the implementation of the e-Invoice system on August 1, 2024, said Deputy Finance Minister Lim Hui Ying.

She said the sector had recorded more than 180 million e-Invoice submissions since its implementation.

“This not only indicates a high compliance level, but also confirms e-Invoice’s effectiveness in enhancing the integrity of the country’s taxation ecosystem via real-time transaction records, reduction of e-Invoice manipulation and closing gaps in revenue leakage,” she said during a question-and-answer session at the Dewan Negara today.

She was replying to a supplementary question from Senator Datuk Low Kian Chuan about sectors identified as having the highest risk of revenue leakage and the impact of e-Invoice on these sectors.

Based on compliance analysis and transaction patterns, Lim said the sectors with the highest risk of revenue leakage include wholesale and retail trade, certain professional services, and cash-intensive business activities.

She said the e-Invoice initiative is important to secure government revenue, so the government can continue to channel more assistance and social services to the people, especially the low-income groups and small and medium enterprises, who need continued support amid challenging economic conditions.

Lim said the e-Invoice is now in its third phase, after a year of implementation, covering taxpayers with annual income or sales of RM5,000,000 to RM25,000,000, and began on July 1 this year.

“The level of acceptance and compliance of taxpayers towards the implementation of e-Invoice is very satisfactory, as on November 26 this year, a total of 108,579 taxpayers had successfully issued 742.5 million e-Invoices,” she said.

Of this total, 64,346 taxpayers implemented e-Invoice on a mandatory basis, comprising 5,528 taxpayers in the first phase, 13,966 taxpayers in the second phase, and 44,852 taxpayers in the third phase.

Besides, more than 44,233 taxpayers in the fourth and fifth phases have voluntarily implemented e-Invoice.

Meanwhile, a total of 5,800 taxpayers who had previously failed to file income tax returns have come forward to file, reporting income for the previous assessment years of RM484 million, contributing an additional RM82 million in tax revenue. — Bernama