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PETALING JAYA: Ahead of the tabling of Budget 2021 on Nov 6, the Electrical and Electronics Association of Malaysia (Teeam) has urged the government to waive the Sales and Service Tax (SST) for all electrical and electronic (E&E) products and services from local producers.
According to Teeam, this would be an incentive to boost locally-made products and services, which could encourage more importers to localise their manufacturing plants and increase foreign direct investment at the same time.
“This would in turn contribute to the reduction of the trade deficit and increase job opportunities,” Teeam said in a statement on Thursday (Oct 29).
Teeam also called on the government to waive penalties imposed on forecasted versus actual profit for income taxes filed to the Inland Revenue Board (IRB).
“This will further lessen the financial burden of SMEs during this challenging period,” it said.
Teeam also called for an increase in the allocation for the Special Relief Facility (SRF) and to accelerate disbursement for business sustainability and survival.
It also called on the government to increase the quantum of existing hiring incentives to help more retrenched workers to secure jobs and reduce unemployment amongst fresh graduates and school leavers during the Covid-19 pandemic.
“The recent spike in the number of Covid-19 cases is back to haunt and hamper businesses.
“Another round of extended conditional movement control order (MCO) implemented in Selangor, Kuala Lumpur, Putrajaya and Sabah for two weeks is expected to take a toll on industries and businesses.
“We sincerely hope that the government will provide the above incentives for SMEs in the E&E industry to wade through these tough times and to continue to provide employment to all Malaysians,” said Team.
Source: https://www.thestar.com.my/news/nation/2020/10/29/govt-urged-to-waive-sst-for-all-made-in-malaysia-electrical-and-electronic-items