PETALING JAYA, Oct 2 — A PKR lawmaker called today for an advanced copy of the Inland Revenue Board (IRB) amendment bill that purportedly gives the finance minister unlimited powers over tax monies before it is re-tabled in Parliament Tuesday.
Kelana Jaya MP Wong Chen expressed concern with the amendment — which the Finance Ministry first tabled in June and retracted later — that reportedly allows the creation of an investment panel with the power to invest unlimited funds in stocks, corporate bonds and IPOs.
“The bill proposed in June gives the finance minister unfettered powers and raises legitimate fears that he will dip into roughly RM140 billion a year in tax collection,” Wong told a press conference at the PKR headquarters here today.
“The prime minister must release it today or tomorrow latest. How do you prepare to debate?” he added, referring to Datuk Seri Najib Razak who is both prime minister and finance minister.
The proposed investment panel under the IRB will comprise seven appointees, which will include the central bank governor, a finance ministry representative and a chief executive.
If the bill is passed, it will give the finance minister the power to appoint the chairman and at least three other members.
Wong said historically, the federal tax collection agency’s investment pool was capped at RM250 million and the type of investments it could take up was limited to fixed deposits.
“The basic principle is that they should engage only in conservative investments as this is taxpayers’ money, for example fixed deposits or government securities,” he said.
“Buying land or private equities is high risk. They should never go to buying properties or stocks,” Wong added.
A report by newswire Reuters claimed that the scope of investment by the panel, as outlined by the bill, includes stocks, corporate bonds and IPOs, apart from establishing companies to engage in “any scheme or enterprise” planned by the board.
