PETALING JAYA: A reintroduction of GST or goods and services tax should start at a low rate and be scaled up yearly with rates informed ahead of time, says a business association.
Malaysian International Chamber of Commerce and Industry president Christina Tee said the GST, if brought back, should be offset through individual and corporate tax cuts as well as other packages to benefit businesses.
Any return of the GST regime should also have very few exemptions such as zero-rated or exempted items to ensure the net was cast wider.
“Refunds, too, should be quick, with conditional refunds upon audit finalisation,” she told FMT.
Tee called for another round of tax amnesty via voluntary tax disclosure. Also, the government should double the tax deductions for companies implementing anti-corruption measures and making environmental, social and governance efforts.
Companies meeting new employment law requirements such as flexible work hours should be given incentives to invest in work-from-home arrangements.
Tee spoke of the “onerous” penalties imposed by the Companies Commission of Malaysia (SSM) and wanted these to be cut, especially for offences related to company closure and also failure to submit audited accounts and annual returns in time.
The American Malaysian Chamber of Commerce (Amcham) said the government should invest in renewable energy infrastructure to ensure affordable and reliable energy supply.
It called for incentives in next year’s budget for companies moving towards using renewable energy and other climate change mitigating actions.
The group also called for “progressive policies that support a robust and resilient economic recovery” with transparency and accountability as the foundation for timely execution of projects.
Amcham also hoped for incentives on screening and treatment of non-communicable diseases.
Kedah Chinese Chamber of Commerce immediate past president Tang Eng Kiang said the budget should tackle the weakening ringgit and interest rate increases, labour shortages and lower the costs of hiring foreign workers.
“Never mind the high costs, the Chinese business community wants stability and lowering of risks, which is of utmost importance. We hope the government can stabilise the economy through the budget,” he said.
Federation of Malaysian Business Associations chairman Malik Abdullah said the ceiling for wage subsidies should be raised to those earning up to RM4,000 versus RM2,000 now so as to cover more staff. He wanted this incentive to remain until the economy improved.
Banks should lower the interest on overdue credit card balances from 18% a year to 9% or 12%.
The federal government’s 2023 budget will be tabled on Oct 7.
Source: https://www.freemalaysiatoday.com/category/highlight/2022/09/26/business-group-calls-for-improved-gst-with-lower-rate/