Govt needs to explain alleged revenue error in Budget 2024

KUALA LUMPUR - The government has been urged to explain the error in the revenue figures after the Budget 2024 move in the fiscal review document and the federal government's revenue estimate which rose to RM4.698 billion for indirect taxes compared to the original figure of RM623 million.

Putrajaya MP Datuk Dr Mohd Radzi Md Jidin said the error involved a large number.

"This morning MPs received a (letter) notification from Deputy Finance Minister Datuk Seri Ahmad Maslan regarding the change in the total revenue figure in line with the measures of Budget 2024 in the fiscal review document on page 231.

"Initially, in this book (document) indirect tax was stated as RM623 million only. This error changed this tax figure from RM4.698 billion. This is a big figure," he said at a press conference at the Parliament building, today.

The former education senior minister said the excise duty which was a component of indirect tax also increased to RM1.148 billion compared to the original figure of RM523 million.

"The most obvious (different) thing is when the new two per cent increase in service tax listed in this book.

"Previously (in the original document) this service tax increase was not listed and now through this service tax it is listed that the increase contributes to RM3.45 billion.

"With this amendment, the amount of additional net revenue increased from RM484 million to RM4,559 billion. So that's why we want the government to explain," he said.

Radzi also questioned the possibility that the recommendation to increase the service tax by two per cent was a last-minute proposal because it was not listed from the beginning.

"We would like this matter to be addressed and given a detailed explanation because we know the track record of the officials at the Finance Ministry in preparing this budget, they are very thorough.

"This is the first time in the history where there is an error in the income statement book," he said.

In order to prevent such mistakes from happening again, he said the position of the Finance Minister should be held by someone who can pay attention to his duties full-time.

"This is to ensure that any budget details are not made at the last minute and the minister needs to sit down and discuss with officials to ensure that the details are really thorough," he said.