[ad_1]
KUALA LUMPUR: The Finance Ministry set up a committee to study various revenue improvement measures, including the possibility of reintroducing the goods and services tax (GST), according to Maybank Investment Bank (Maybank IB) Research.
In a note published today, following a dialogue with Finance Minister Tengku Zafrul Aziz last Friday, Maybank IB Research quoted Tengku Zafrul as saying that other measures included analyzing weaknesses in the tax regime and the impact of the new taxes. in the economy, study options for new taxes. Taxes such as carbon tax and digital tax, streamlining tax incentives, improving tax administration, and improving tax auditing, such as implementing tax identification numbers and improving data analysis.
“Timing is also important, especially with new taxes, so as not to interrupt the economic recovery process.
“2021 is a year of transition from crisis to recovery,” he quoted Tengku Zafrul.
In the medium term, Tengku Zafrul said the government is committed to reducing the budget deficit to 4% of gross domestic product by 2023.
“The key strategy will be revenue improvement given the limited scope to cut spending, as 95% of operating expenses are ‘locked’ obligations, such as emoluments, debt service charges and retirement charges,” he said .
On the glove sector, Tengku Zafrul said glove manufacturers’ corporate income tax is projected at RM2.8 billion in 2020 and RM4.7 billion in 2021.
“The government decided that no windfall tax will be imposed on glove manufacturers to avoid potential ‘opportunity costs / losses’, such as glove manufacturing companies that invest abroad rather than in Malaysia, and ship a wrong signal to existing and potential investors in other industries. ” was quoted as saying.
On the contribution of 400 million ringgit from glove manufacturers as announced in the Budget 2021, Tengku Zafrul said that the contributions are voluntary and are above the glove manufacturers record corporate income taxes of 2.8 billion. ringgit in 2020 and ringgit 4.7 billion in 2021.
On the Covid-19 vaccine, the finance minister said that the budget allocated RM3 billion to procure vaccines through Malaysia’s participation in the World Health Organization’s Covax program and negotiations with pharmaceutical companies that carry out Stage 3 vaccine clinical trials, with the goal of obtaining vaccines in the first quarter of 2021.
CLICK HERE TO OBTAIN THE LATEST DATA ON THE SITUATION OF COVID-19 IN MALAYSIA
We are live on Telegram, subscribe here for the latest news and announcements.
