~ Tax Cuts In The Pipeline
Posted by faisalrenzo on June 27, 2011
Johor Baru: The government is considering reducing corporate and individual taxes in the Budget 2012 to be tabled in October.
Deputy Finance Minister Datuk Donald Lim Siang Chai said the tax reductions could be made once the implementation of the long-awaited goods and services tax (GST) takes place.
“There are more than 225 countries in the world that have already implemented the GST and Malaysia too will implement it soon,” he said after launching Pantech Stainless & Alloy Industries Sdn Bhd’s new RM100 million factory in Pasir Gudang Industrial Estate here yesterday.
Also present at the event were Pantech group executive chairman and managing director Datuk Jimmy Chew Ting Leng, group deputy managing director Datuk Goh Teoh Kean and Johor International Trade, Industry, Energy, Water, Communication and Environment committee chairman Tan Kok Hong.
Lim said with the GST in place, the government is hoping to reduce the country’s deficit level to between 2.8 per cent and 3 per cent by 2015 from 5 per cent currently.
Business communities and industries, he said, could expect some good news in Budget 2012 as the government sees the private sector as the main economic driver to help transform Malaysia into a high-income nation by 2020.
The deputy minister also said that there will be more incentives for investors and business communities, but declined to give details as they will be announced by Prime Minister Datuk Seri Najib Razak in October.
Najib, who is also Finance Minister, will chair the Consultative Meeting session with players from the industries next Tuesday to discuss matters related to businesses in Malaysia.
“At present, we (the government) welcome feedback from all business communities, especially the private sector, to put forward their views, suggestions or proposals, to be included in Budget 2012,” Lim said.
The government is serious in getting feedback on the problems or challenges faced by the business communities, including the problem of employing local skilled workers.
“For Malaysia to become a developed nation by 2020, 40 per cent of the country’s total workforce must be skilled labourers … at present, only 29 per cent of them are skilled workers,” he said, adding that the country’s manufacturing sector has to reduce its dependency on foreign workers by offering better salaries to locals.