Customs deputy director-general (enforcement/compliance) Sazali Mohamad said periodic checks conducted by its compliance and audit division showed that some companies failed to meet the set regulations.

He said actions that can be taken against defaulting companies included barring their board members from travelling abroad.

“If there are tax arrears, they will be subjected to a penalty higher than the amount of tax due, or court action if necessary,” he said, adding that although less than 10% of companies defaulted it still had financial implications on the country.

Sazali said tax collection for 2022 was RM53.54 billion, an increase of 25.97% or RM11.03 billion compared to the collection in 2021.

“This is due to increased collection from tax components such as sales tax, service tax, excise duty, import duty and levies,” he said at a press conference in conjunction with the SST handholding programme “Ikrar Betul Bayar Betul” today.

The department is targeting a revenue collection of RM52 billion for 2023, he said.

On the event today and tomorrow, he said it was to provide better understanding on SST legislation and the responsibility to declare and pay taxes accordingly.