Zafrul Malaysia Can T Afford A Cut In Corporate Tax Now At 24pct


 


Malaysia can’t afford a cut in corporate tax, which is currently at 24 percent, unless the country’s tax base is broadened and the country maintains a stronger than average growth trajectory, Finance Minister Tengku Zafrul Abdul Aziz said.
“If you look at the corporate income tax, it does represent a big chunk of the federal government’s revenue of approximately 32.8 percent of the federal government revenue, including petroleum income tax, and given the widening fiscal deficit which is expected to be around 6.5 percent this year due to the pandemic.”
“(Hence) Malaysia, I believe, is not in the position at this stage to afford a tax rate cut as one of the problems have been in our narrow tax base. Until we can broaden our tax base and maintain a stronger than average growth trajectory, then we can consider a cut in the corporate tax rate,” he said in an interview yesterday with Singapore’s The Straits Times entitled: “Beyond the Pandemic: Malaysia’s way forward.”
However, given the global trend is favouring lower corporate tax, Malaysia in the future may need at some point to review corporate structure to realign with the broader economic growth in the medium term, he said when asked if Malaysia will consider cutting its corporate tax to 15 percent over the next three to five years.
Malaysia’s corporate tax is among the highest within Asean. Singapore has the lowest at 17 percent, Vietnam, Thailand and Cambodia at 20 percent and Indonesia at 22 per cent.
“Having said that, lower corporate tax is not the only component to attract foreign direct investments (FDIs). There are other key factors such as good infrastructure, human resources and clear regulations,” Zafrul said.


In a recently released pre-budget statement, the Ministry of Finance (MoF) had said that the government is considering measures to increase tax revenue through increased tax compliance as well as address the issue of revenue leakages, especially involving the smuggling of high-duty goods estimated at RM5 billion per annum.
Special Voluntary Disclosure Programme
In a Pre-Budget Statement, the MoF said that among the recommendations in the study is the implementation of the Special Voluntary Disclosure Programme (SVDP) for indirect taxes administered by the Royal Malaysian Customs Department.
It also said the government is aware that a conducive investment environment, whether for foreign or domestic direct investments, encompasses many aspects, including economic and political stability, consistent and transparent policies, efficient labour market, level of infrastructure facilities, sound governance structure, strong legal framework and decent quality of life in Malaysia.
“Fiscal incentives, including taxes, are one of the many factors that can attract investment; they can play an important role as a strategic policy tool in order to drive investments in Malaysia.”
As for addressing revenue leakage, MoF in the 17-page document said the Multi-Agency Working Group, chaired by the MoF to formulate strategies to curb smuggling activities, has been further strengthened by the participation of the Malaysian Anti-Corruption Commission and the National Financial Crime Prevention Centre.
Elaborating on investors’ confidence and FDIs, Zafrul acknowledged that it has been affected severely due to the Covid-19 pandemic and to some extent, the domestic political situation.
“But despite all these, we have recorded much better investment inflow, especially when it comes to FDIs in the first half of 2021 as compared to the first half of 2020. So, if you look at our vaccination rate and as more economic sectors open up, we are expecting improved investment outlook generally.”
Malaysia remained a preferred investment destination due to its well-developed investment ecosystem.
“Additionally, what is equally important is the direct domestic investment (DDI), which we continue to emphasise on,” Zafrul added.
On other developments, the finance minister said the government will not tap into the national reserves to fund the upcoming budget.
Asked if Malaysia will allow a bigger role for the private sector for infrastructure financing, he said it is the right time to revive more public-private sector partnerships and cited the 5G infrastructure project.
“Other infrastructure projects that may require private sector participation will be railway projects that have been announced recently.”

Prime Minister Ismail Sabri Yaakob
Commenting on political stability, he said the Keluarga Malaysia concept introduced by Prime Minister Ismail Sabri Yaakob is focused on continuity and particularly on the Covid-19 challenges.
"Political leaders must strive for political stability, as we know, political turbulence is too costly for our economy and impacts investor confidence in the short term, medium term and also long term.
"More importantly, we must also regain the confidence of Malaysians on the government's exit strategy, fundamentally. We must work together as a family or Keluarga Malaysia," he stressed.
In addition, Zafrul is optimistic that together with the opposition politicians, they will work together to support the nation's recovery and build a more resilient and sustainable future for all.
"For us at the Ministry of Finance, just like Budget 2021, we will strive to consult as many parties as possible in preparing Budget 2022. In fact, we have started the stakeholder engagement.
"We will look at how to get feedback which we can include in our recovery resilient reformed budget.
"I'm optimistic that a safe passage for Budget 2022 will be created and the government is given ample space and support to navigate through these tough terrains in the short to medium term accommodating economic recovery," he said.
- Bernama


Artikel ini hanyalah simpanan cache dari url asal penulis yang berkebarangkalian sudah terlalu lama atau sudah dibuang :

http://malaysiansmustknowthetruth.blogspot.com/2021/09/zafrul-malaysia-cant-afford-cut-in.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MalaysiansMustKnowTheTruth+%28Malaysians+Must+

Kempen Promosi dan Iklan
Kami memerlukan jasa baik anda untuk menyokong kempen pengiklanan dalam website kami. Serba sedikit anda telah membantu kami untuk mengekalkan servis percuma aggregating ini kepada semua.

Anda juga boleh memberikan sumbangan anda kepada kami dengan menghubungi kami di sini
Youths Aged 18 Can Now Stand For Election In Penang

Youths Aged 18 Can Now Stand For Election In Penang

papar berkaitan - pada 1/9/2021 - jumlah : 229 hits
The law reducing the minimum age for an election candidate to 18 received bipartisan support from Penang state assemblymen today GEORGE TOWN Penang has passed a law allowing those aged 18 and above to be candidates for state seats in the ne...
Realme Book Offficially Now In Malaysia

Realme Book Offficially Now In Malaysia

papar berkaitan - pada 20/8/2021 - jumlah : 271 hits
Hi Everyone Today realme Malaysia has officially launched its first laptop realme Book while announcing its availability in the Malaysian market Powered by the 11th Gen Intel Core Processor the realme Book will be offered in three variants ...
10 Things Ismail Can Do To Help Himself And Malaysia

10 Things Ismail Can Do To Help Himself And Malaysia

papar berkaitan - pada 22/8/2021 - jumlah : 294 hits
So after all the dramas and rumours Ismail Sabri Yaakob finally becomes Malaysia s ninth prime minister the third installed in three years and four months Ismail s rise is met with an online petition against it that has registered 350 000 s...
Rise Above Partisanship So Malaysia Can Recover From Covid Crisis Kit Siang Tells All Parties

Rise Above Partisanship So Malaysia Can Recover From Covid Crisis Kit Siang Tells All Parties

papar berkaitan - pada 26/8/2021 - jumlah : 201 hits
DAP s Lim Kit Siang urged his fellow politicians today to rise above their party ideologies and work together so the country can move forward in the face of the Covid 19 pandemic The veteran lawmaker said national unity should take preceden...
100 Days For Cabinet A Luxury Malaysians Can T Afford Says Patriot

100 Days For Cabinet A Luxury Malaysians Can T Afford Says Patriot

papar berkaitan - pada 28/8/2021 - jumlah : 420 hits
Mohamed Arshad Raji reminded Ismail Sabri Yaakob that he cannot have the crown and get away with failures PETALING JAYA The 100 days grace period that Prime Minister Ismail Sabri Yaakob gave for his Cabinet team to perform is a luxury that ...
New Pm Optimistic Over Malaysia S Future Says Can Balik Kampung Soon

New Pm Optimistic Over Malaysia S Future Says Can Balik Kampung Soon

papar berkaitan - pada 23/8/2021 - jumlah : 321 hits
A live telecast of Prime Minister Datuk Seri Ismail Sabri Yaakob s speech is seen at a restaurant in Kuala Lumpur August 22 2021 Picture by Yusof Mat IsaKUALA LUMPUR Aug 22 Prime Minister Datuk Seri Ismail Sabri Yaakob has expressed his opt...
Congrats Now Prove Majority Support Asap Hanipa Tells Pm

Congrats Now Prove Majority Support Asap Hanipa Tells Pm

papar berkaitan - pada 22/8/2021 - jumlah : 406 hits
Sepang MP Hanipa Maidin has congratulated Ismail Sabri Yaakob on being sworn in as Malaysia s prime minister but has reminded him that he must waste no time in proving that he has the support of the majority of members of the Dewan Rakyat I...
Suzuki Malaysia Six New Models

Suzuki Malaysia Six New Models

papar berkaitan - pada 26/8/2021 - jumlah : 143 hits
Suzuki Malaysia returns with six new models THE demise of Suzuki Assemblers Malaysia saw the Suzuki brand unrepresented for quite some time here in Malaysia Behind the scenes however the brand was being reborn and now taken over by Suzuki M...
Warga Malaysia Terima Anugerah Atas Penyelidikan Kanser

Warga Malaysia Terima Anugerah Atas Penyelidikan Kanser

papar berkaitan - pada 26/8/2021 - jumlah : 193 hits
MALAYSIAKINI Saintis kelahiran Malaysia di United Kingdom Dr Serena Nik Zainal menerima anugerah Francis Crick Medal and Lecture 2022 berhubung sumbangannya terhadap kajian punca barah Di Twitter Serena berkata dia teruja dan bersyukur atas...
Celebrate A Peranakan Christmas In Kuala Lumpur With Santa Grand Signature S Exclusive Buffet

Maggi Malam S Roadside Success Sparks Controversy Over Alleged Unlicensed Operation

Lirik Lagu Sejarah Dato Sri Siti Nurhaliza

Latheefa Koya Tak Nak Masuk Umno Ker

Siti Nurhaliza Sejarah Chord

Bayangkan Ejen Mossad Di Komtar Jb

Rm12 8bil In Unclaimed Money Awaiting Owners

We Buy Small To Medium Sized Companies


echo '';
Senarai Lagu Separuh Akhir Muzik Muzik 39 Semi Final Muzik Muzik SFMM 2024 Persaingan Merebut Tiket Ke AJL Anugerah Juara Lagu

Biodata Terkini Fairuz Selamat Q Face Peserta Gegar Vaganza 2024 Musim 11 GV11 Penyanyi Lagu Izinkanlah

Biodata Terkini Arrora Salwa Salwa Razak Peserta Gegar Vaganza 2024 Musim 11 GV11 Penyanyi Lagu Ahmad

Biodata Terkini Penyanyi Liza Aziz Peserta Gegar Vaganza 2024 Musim 11 GV11 Adik Beradik Kepada Azlina Aziz

Senarai Peserta Gegar Vaganza 2024 Musim 11 GV11 Tonton Konsert Minggu 1 Pada 24 November Live Di Astro Ria Sooka Online


Makna Dan Jobbie Meraikan Pink Wobbly Breast Odyssey Di Kpj Damansara 2

Ahli Parlimen Pembangkang Cadang Kerajaan Sedia Pulau Tempatkan Pelarian

Lelaki Maut Dihempap Batu Kuari

Israel Mahu Kebebasan Serang Lubnan Selepas Gencatan Senjata

Yang Nak Berpeluang Miliki Microsoft Surface Pro Terpakai Jangan Lepaskan Peluang Ni

Pemandu Wanita Dihempap Kontena Sempat Telefon Ibu 4 Minit Sebelum Meninggal