Controversial IRBM bill postponed

KUALA LUMPUR: The government has postponed the second reading of the controversial Inland Revenue Board of Malaysia (IRBM) (Amendment) Bill 2014 to the next Parliamentary sitting on Oct 7 after the Opposition raised alarms on questionable provisions.
The amendments will create an investment panel under the Finance Minister's authority, who will have unfettered powers to determine how much income tax collection and what to invest in.
The postponement was done under Clause 62 of the Dewan Rakyat Standing Order which allows a minister to withdraw or postpone a bill.
The Finance Ministry said in a statement shortly after that the bill was withdrawn to allow a thorough review of the proposed amendments and that IRB's main role as tax collector will not be affected.
Wong Chen (PKR-Kelana Jaya) called it a small victory and urged the government to revise the bill by taking into consideration the issues raised before tabling it again in October.
However, he also said Deputy Finance Minister Datuk Ahmad Maslan's explanation that the IRB investment panel will not tap into income tax revenue is inadequate.
Ahmad had reportedly said in Sin Chew Daily that the panel will only have access to the existing commission incentive of 1.5% of all tax collected, which is expected to be RM140 billion for 2014.
Wong said the explanation does not hold water as there is no mandated limit to how much the panel can invest and thus there is no guarantee that the amount will not eventually increase.
"The 1.5% that Ahmad used is not a fixed percentage mandated by law; as such, there is no guarantee that this sum will not increase to 3% or 5% in 2016," he said.
Wong said Ahmad had not provided any legal guarantees and safeguards and Pakatan Rakyat is united in opposing what they consider a possibly unconstitutional bill.
Sim Tze Tzin (PKR-Bayan baru) said the Opposition will start a campaign to oppose the bill in its current form by appealing to business leaders and the masses.