Kota Kinabalu: The Liberal Democratic Party (LDP) criticised the Inland Revenue Board’s proposal to impose a surplus fundraising tax on non-profit organisations, saying it could force charity closures and harm vulnerable communities.
LDP Women Movement Leader Glenna Wong in a statement, here, said the policy would undermine public confidence in charitable giving and harm the country’s most vulnerable populations.
She said charitable organisations operate fundamentally differently from businesses and should not be subjected to corporate taxation models.
“Charity is not business, it is built on public trust,” she said.
“Donations exist because people believe these organisations can deliver help more effectively than the government.
“Charitable surpluses often result from administrative delays in aid distribution rather than actual excess funds and taxing these reserves could disrupt critical assistance programmes,” she added.
Glenna expressed concern for small and medium-sized local charities, which lack the resources to handle complex tax compliance and could be forced to close.
She noted this would be especially damaging as Malaysia continues its economic recovery, with many low-income families and rural communities depending on charitable support.
The party condemned the timing as heartless, arguing that the government should be supporting rather than taxing charitable efforts during challenging economic times.
She called on the Sarawak and Sabah state governments to protect their local non-profits by formally opposing the Federal proposal and considering State-level protective measures.
“The progress of a government is not measured solely by GDP growth, but by how it treats those who serve others,” she said, urging civic groups and citizens to unite against the proposal.
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