Malaysia won't impose travel bans for CP500 tax arrears, deputy minister clarifies

KUALA LUMPUR — Taxpayers who miss payments on their CP500 tax instalments will not be subjected to travel bans in the immediate term, the Deputy Finance Minister said on Monday, offering reassurance to those struggling with their tax obligations. The statement aims to ease concerns among individuals with outstanding instalment payments regarding potential restrictions on their ability to travel abroad. The CP500 scheme, which allows taxpayers to settle outstanding tax liabilities through fixed monthly instalments, has been a key initiative to help individuals manage their tax debts. The clarification suggests the government is taking a measured approach to enforcement, prioritising payment compliance without resorting to restrictive measures at the outset. The authorities have not ruled out stronger enforcement actions in future, but have signalled their preference for working with taxpayers to resolve payment defaults through existing compliance mechanisms.