(Kuching, 4th) Stampin Member of Parliament Chong Chieng Jen once again advocated in Parliament for the government to review the current electronic invoice policy and raise the implementation threshold to a turnover of RM500,000 to avoid unnecessary burdens on small vendors and merchants.
Chong Chieng Jen, who is also the Padungan State Assemblyman, made this appeal during his participation in the debate on the "2024 Finance Bill" in Parliament today.
Chong Chieng Jen pointed out that from July 1, 2025, all businesses with an annual turnover of between RM150,000 and RM25 million will be obliged to implement an electronic invoice system. However, this threshold is too low and will undoubtedly severely affect small vendors and micro-businesses with an annual turnover between RM150,000 and RM500,000.
He explained that although many small businesses have an annual turnover exceeding RM150,000 yet less than RM500,000, after deducting operational costs, their monthly net income is often less than RM5,000, keeping them within the B40 low-income group.
“Implementing the electronic invoice policy will force them to incur extra expenses for purchasing equipment and software for generating electronic invoices, which is a considerable burden. This is why on November 2nd, during the budget debate, I promptly urged the government to raise the threshold from the currently proposed annual turnover of RM150,000 to RM500,000.”
“However, when I received a written response from the government, I was deeply disappointed as it stated that the government had no intention of raising the threshold of RM150,000 annual turnover for implementing the electronic invoice system. The written response further mentioned that the government would provide tax relief for the cost of implementing electronic invoices for SMEs.”
Chong Chieng Jen expressed discontent with this and pointed out that for those small businesses and vendors with an annual turnover of RM150,000 to RM500,000, their profits are not even at a level where they need to pay income tax. Hence, such tax relief is meaningless and offers no assistance to them.
“If these businesses and vendors with an annual turnover of less than RM500,000 mostly don't need to pay income tax, then why force them to bear the extra cost of implementing electronic invoices?”
Chong Chieng Jen further sarcastically remarked that in the past, criticism was directed at the Barisan Nasional government for implementing the Goods and Services Tax (GST), but at that time, businesses with an annual turnover below RM500,000 were exempt from declaring and paying taxes. Now, the Unity Government is going the opposite way, forcing these low-income small businesses to bear the cost of implementing electronic invoices.
“Is this Enlightened Government not even as understanding of public livelihood as the past Barisan Nasional Government and insists on being so indifferent to the plight of small vendors and merchants?”
Chong Chieng Jen once again urged the government to re-examine the electronic invoice policy and raise the implementation threshold to RM500,000 to avoid causing unnecessary burdens on small businesses and micro-enterprises.