Should We Tax Revenue Instead of Profit?

Instead of tweaking tax rates, why not simplify? While LHDN's recent record-breaking tax revenue for 2025 is a win for public finances, it inevitably raises critical questions about national fiscal strategy.Dr. Veerinderjeet Singh, Senior Advisor on Tax Policy at KPMG Malaysia, and Dr. Carmelo Ferlito, CEO of the Center for Market Education, joins Enterprise Explores to dissect the state of Malaysia's fiscal architecture.We examine why a highly compressed local wage structure limits direct household taxation, the systemic complexities of navigating the current multi-rate Sales Tax and Service Tax (SST) framework, and the operational compliance friction facing businesses.The panel unpacks radical proposals for structural tax simplification: from tying corporate tax liabilities directly to audited financial statements to introducing flat-rate personal reliefs and enacting presumptive turnover taxes to formalise the shadow economy.Finally, we look at why reaching a sustainable 15% tax-to-GDP ratio depends heavily on fixing public sector leakages, cutting government-linked intervention, and restoring taxpayer trust.See omnystudio.com/listener for privacy information.