KUALA LUMPUR: The implementation of the Goods and Services Tax (GST) in Malaysia is commendable if it allows for a further reduction in corporate and indirect taxes, according to the Associated Chinese Chambers of Commerce and Industry (ACCCIM).
ACCCIM national council member Koong Lin Loong said there is a need to reduce the corporate tax to attract foreign direct investment (FDI), as quoted by Bernama. Koong was speaking at the ACCCIM's media conference on the GST on Wednesday, Oct 13.
"Malaysia's corporate tax is at a relatively high level, compared to neighbouring countries. The proposed GST ' which is at 4% ' will provide a more broad-based tax collection and revenue, if it is to replace, the sales and services tax of 10% and 5% respectively.
"It will also provide another source of revenue for the government, and from being overdependent on returns from oil and gas," he said, while also urging the government to provide a two-year grace period to enable businesses to adapt to the GST system.
On proposals for the upcoming Budget 2011, Koong said the ACCCIM would like to see a reduction in taxes for small and medium enterprises (SMEs), from 20% to between 17% and 18%.
"If the taxes cannot be reduced, we would like to request that the chargeable income for SMEs, be increased from RM500,000 to RM1 million. This will help reduce the financial burden of the SMEs," he said, adding that the ACCCIM was calling upon the government to review the sales tax as it is relatively out of touch with current times.
The ACCCIM is organising a nationwide series of seminars on the GST to educate businesses ' particularly SMEs ' to better understand it along with the impact on businesses and issues to be potentially faced during the tax preparation.
ACCCIM national council member Dr Leong Kai Hin said the inaugural seminar on the GST would be held from 9am to 2pm on Oct 29, at the Berjaya Times Square Hotel.
ACCCIM national council member Koong Lin Loong said there is a need to reduce the corporate tax to attract foreign direct investment (FDI), as quoted by Bernama. Koong was speaking at the ACCCIM's media conference on the GST on Wednesday, Oct 13.
"Malaysia's corporate tax is at a relatively high level, compared to neighbouring countries. The proposed GST ' which is at 4% ' will provide a more broad-based tax collection and revenue, if it is to replace, the sales and services tax of 10% and 5% respectively.
"It will also provide another source of revenue for the government, and from being overdependent on returns from oil and gas," he said, while also urging the government to provide a two-year grace period to enable businesses to adapt to the GST system.
On proposals for the upcoming Budget 2011, Koong said the ACCCIM would like to see a reduction in taxes for small and medium enterprises (SMEs), from 20% to between 17% and 18%.
"If the taxes cannot be reduced, we would like to request that the chargeable income for SMEs, be increased from RM500,000 to RM1 million. This will help reduce the financial burden of the SMEs," he said, adding that the ACCCIM was calling upon the government to review the sales tax as it is relatively out of touch with current times.
The ACCCIM is organising a nationwide series of seminars on the GST to educate businesses ' particularly SMEs ' to better understand it along with the impact on businesses and issues to be potentially faced during the tax preparation.
ACCCIM national council member Dr Leong Kai Hin said the inaugural seminar on the GST would be held from 9am to 2pm on Oct 29, at the Berjaya Times Square Hotel.
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