Malaysia records 2.14 billion e-invoices, government stresses tax fairness

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Malaysia records 2.14 billion e-invoices

Highlights

As of 2 Nov, Malaysia had recorded 2.14 billion e-invoices involving 269,900 taxpayers, according to Prime Minister Datuk Seri Anwar Ibrahim.
E-invoicing aims to ensure tax fairness by detecting non-compliance and upholding tax obligations without introducing new taxes or increasing the tax burden.
The Madani Budget 2027 allocates RM510 billion, including RM459.8 billion in federal government expenditure, to strengthen economic resilience amid a challenging outlook for 2027.

This article was translated from the original. Read the original version by our correspondent here.

E-invoicing implementation and the government's position

As reported by The Edge Malaysia, Prime Minister Datuk Seri Anwar Ibrahim said a total of 2.14 billion e-invoices had been submitted as of 2 Nov, involving approximately 269,900 taxpayers.

Anwar, who is also the finance minister, said e-invoicing was not intended to create new taxes or increase the public's tax burden. Instead, he said the system was an important tool for upholding fairness, detecting non-compliance and ensuring everyone meets their respective tax obligations.

He said the use of the latest technology, data analytics and automation was important to strengthening tax administration. However, decisions must not be left entirely to technology without human judgment, particularly when the rights and interests of the public are involved.

In a speech marking Innovation and Integrity Day 2026 on Tuesday, Anwar said artificial intelligence has no moral values or human qualities. Technology is intelligent, he said, but cannot replace human wisdom, conscience and judgment. The speech was delivered by Finance Minister II Datuk Seri Amir Hamzah Azizan at an event organised by the Inland Revenue Board.

Impact on revenue collection and the economy

Anwar said technological progress must always be guided by human values so that its use benefits society. He stressed that it was unfair for honest workers to pay tax on their income while those with greater financial resources concealed their earnings through multiple layers of business transactions and accounting tricks.

He also stressed that tax fairness requires the law to be enforced impartially. Inland Revenue Board officers, he said, must be firm against deliberate tax evasion while exercising discretion within the legal framework for taxpayers who need assistance and guidance.

Anwar said 2027 was expected to remain challenging amid global economic uncertainty, including prolonged conflicts in the Middle East, supply disruptions, pressure on energy prices and the risk of extreme weather caused by the El Niño phenomenon. In this context, the fifth Madani Budget for 2027 mobilises RM510 billion in resources, including RM459.8 billion in federal government expenditure, to sustain development, strengthen economic resilience and protect public welfare.

He said fair and effective revenue collection was essential to achieving these goals. Anwar also expressed his appreciation to all Inland Revenue Board personnel for their contributions to strengthening the country's revenue position, urging them to continue mastering technology, improving efficiency and upholding integrity in carrying out their duties.

In our previous coverage of fiscal warnings following the 2027 Budget, we highlighted the view that Malaysia needs to strengthen its fiscal buffers to withstand global shocks and persistently high borrowing costs. The article also explained that fiscal space is narrowing as operating expenditure takes up a dominant share, increasing the need to broaden the tax base and improve measures such as targeted fuel subsidies to support fiscal consolidation.

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