Tuesday, July 1, 2008

E-Government in Malaysia: Its implementation so far and citizen's adoption strategies

Lembaga Hasil Dalam Negeri Malaysia (LHDN) or Inland Revenue Board of Malaysia (IRB) is one of the Government body where its main function is to act as an agent of the Government and to provide services in administering, assessing, collecting and enforcing payment of income tax, petroleum income tax, real property gains tax, estate duty, stamp duties and such other taxes.

When IRB started to go online, it maybe just as an information portal to the citizen. As the technology has advanced, the IRB has introduced e-FilingE-filing is a way of filing income tax return through online. Since 2006, there is about 186,343 taxpayers are using the service and has been increase to 874,814 taxpayers as of 2007 which show a tremendously good response from the citizen. IRB has encouraged the citizen to file their tax return through e-Filing because it is quick, easier and safe. In 2006 onwards, taxpayer can receive their refund within one month if they file their return through e-Filing. This is to encourage the taxpayers to use the system which has been improved and more user-friendly. In the conventional way, one may have to wait for a few months or even few years to receive their refund cheques as the process is time consuming. application to the taxpayers in 2003 for corporate taxpayers and in 2004 for individual taxpayers.

This year, IRB said they wanted to introduce a system where refunds could be banked into the taxpayer’s bank account under e-Refund if the taxpayers file through e-Filing. In the past, taxpayers always complaining about the delay in processing refunds, refund cheques in the mail getting lost and taxpayers’ contribution not updated. Furthermore, IRB said the process of preparing refund cheques and mailed to the taxpayer take five to six weeks to reach them. This hassle has slow down the efficiency of IRB and that is why they wanted to introduce the e-Refund.

Nevertheless, there are also taxpayers who prefer to file manually as they have gotten use to the conventional way. Other reasons include that the system is not user-friendly as the system tend to fail in the mid way of the filing. Since the e-Filing system just started few years ago and a lot of feedback is received from the user, the e-Filing service provider, Digicert had improved the system this year by simplified the system using Roaming Public Key Infrastructure (PKI), which is an online centralised digital signature to identify the identity of taxpayers. Thus, taxpayers need not to download digital certificate again and it now takes only four steps to activate their digital certificate. In addition, the board had also introduced an e-Filing system for tax agents so that they can file forms on behalf of their clients.


Although there are still some weaknesses, IRB never stop improving its system to ensure a smooth filing for taxpayers and more user-friendly. Therefore, it is very important for the citizen to give co-operation and feedback to them so that they can improve it better. We just need to give some time to IRB to work harder to enhance and simplify the system so that all taxpayers can subscribe to e-Filing.


*Oi Ming*



2 comments:

Desmond said...

i personally dun have confidence to use the E-filling provided...
because i noticed the technology of our country is still in the very beginning stage (especially in the goverment dept). I have been to some goverment dept, and it always happen that their computer system and manual system are not integrated. for example when i do my passport from kajang, i need get approval from putrajaya whereas putrajaya already have my record. perhaps im bias. anyway i hope our goverment dept will improved and archieve Wawasan 2020:)

Trance Boundaries said...

i agree that our government department is still at a very beginning stage but i think we as citizen should give our support to them so that our country could improve and serve our country better.