KUALA LUMPUR (March 9): The government said its target of a 5% fiscal deficit is achievable this year based on the higher oil and tax revenue projection, coupled with the US$1.8 billion settlement between 1Malaysia Development Bhd (1MDB) and International Petroleum Investment Company (IPIC).

“Based on the latest figures we obtained today, we can achieve our targets,” Prime Minister Datuk Seri Anwar Ibrahim said in the Dewan Rakyat on Thursday (March 9).

“I have been through this process [of reversing fiscal deficit] for eight years. When there was a deficit, I said it will be balanced in two years, and it balanced [in two years]. A year later, I committed a surplus, and we achieved a surplus.

“Alhamdulillah, that experience will serve as a lesson to me today to reduce the [present] deficit, and this is something that we are capable of achieving,” he added in his winding-up speech for the policy stage debate of the revised Budget 2023.

Anwar, who is also the finance minister, said he has instructed the Inland Revenue Board (LHDN) to enforce tax collection without fear or favour to prevent leakages of government revenue.

“I went to LHDN and urged them to collect tax from the super-rich. I told them that regardless of whether they are a Tun or Tan Sri, if they are supposed to pay [tax], they must pay. But I did not hear anything, especially from the opposition, in support of our move to take action against the super-rich,” he said.

Anwar added: “The opposition criticised us for imposing tax on luxury goods. If we don’t tax the poor, don’t impose capital gain tax on the rich, don’t impose tax on flour and wheat consumed by the poor, and don't tax luxury goods like bags and necklaces, what are we supposed to tax?"

“So, I proposed to tax luxury goods. But the opposition objected to this. I don’t know where they are going to get revenue if they become the government,” he said.

On the government’s medium-to-long term measures on fiscal discipline, Anwar said Putrajaya will introduce the Fiscal Responsibility Act for further reforms.

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