Reduce Tax For Smes Provide Rm1bil In Aid Dap Tells Putrajaya


 
There are an estimated 1.3 million SMEs nationwide.PETALING JAYA: DAP has called on the finance ministry to reduce the corporate tax from 17% to 15% for small- and medium-sized enterprises (SMEs) in the coming national budget.
In a joint statement, the party’s MPs comprising Loke Siew Fook (Seremban), Tony Pua (Damansara) and Chan Foong Hin (Kota Kinabalu) also proposed for the tax threshold for SMEs to be increased to RM1 million from RM600,000.
This, they say, will help the estimated 1.3 million SMEs – which they described as the backbone of the Malaysian economy – recover from the impact of the Covid-19 pandemic.
“Therefore, ensuring the resilience of these SMEs will inevitably strengthen the country’s overall economic strength, not only in the current stage of economic recovery, but also to ensure that these SMEs can cope with any shocks and disruptions coming their way in the future,” they said after presenting nine proposals to finance minister Tengku Zafrul Aziz.
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They also suggested that Putrajaya should provide RM1 billion to SMEs to improve their productivity, and to set up a “One-Stop Digitalisation Centre” to assist SMEs in their application for digitalisation incentives.
The government should also simplify the recruitment process for foreign workers and provide tax relief for SMEs to comply with corporate governance, social and environmental (ESG) related costs.
To address the rising food costs and food security, DAP proposed a strategic plan to stabilise food and agricultural prices.
Putrajaya, it said, should also reduce tariffs on rice, increase farmers’ allowances, ease port congestion, and increase lane tenure security for agricultural land and the use of abandoned land.
“DAP hopes that the above proposals will be seriously taken into consideration by the government as this series of measures will not only help support Malaysia’s economic recovery at all levels, but also enhance economic resilience and ensure that Malaysians can face any challenges in the future.”  - FMT


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