Tax perks for businessmen ‘will help economy grow’
IT’S good news for business citizens. The corporate tax rate will be reduced from the current 28% by two percentage points over the next two years.
For 2007, it will come down to 27%, and further cut to 26% the following year.
This is to promote greater private sector investment.
Although this measure will result in a significant reduction in revenue, the Government is confident that it will have a positive overall effect on the economy.
Welcoming the proposal, industry players said it would be a boost for the economic growth of the country.
Tax consultant V. Shanmuganathan said the cut was good for businessmen because it would improve their cash flow and reduce the cost of doing business in Malaysia.
“The reduction will indirectly encourage foreign businessmen to invest in Malaysia,” he said when commenting on the tax cut.
“I believe the reduction will lead to the creation of more jobs for Malaysians and higher income levels generally. Therefore it will improve the purchasing power of the people.”
Malaysian Institute of Taxation (MIT) council member Datuk Raymond Liew said the move would attract additional Foreign Direct Investment (FDI) into the country.
Another MIT council member Dr Jeyapalan Kasipillai said the tax relief on the purchase of books was a good decision as it would help create a more cultured society.
“It will also promote lifelong learning,” he added.
Tax consultant Stanley Selvakumar said the reduction would help create a better overall living standard among Malaysians, as their incomes would be higher.
He added that several other perks would also help the business climate in the country.
“By giving 10 years’ tax exemption for biotech ventures and Islamic banking, the Government will encourage more people to participate in these two emerging industries. Malaysia can thus be more competitive in the global market,” he noted.
In this way, Selvakumar said, the Government showed that it was more committed to providing a conducive environment to spur greater dynamism in the private sector.
“This will also enhance competitiveness in the private sector,” he added.
For 2007, it will come down to 27%, and further cut to 26% the following year.
This is to promote greater private sector investment.
Although this measure will result in a significant reduction in revenue, the Government is confident that it will have a positive overall effect on the economy.
Welcoming the proposal, industry players said it would be a boost for the economic growth of the country.
Tax consultant V. Shanmuganathan said the cut was good for businessmen because it would improve their cash flow and reduce the cost of doing business in Malaysia.
“The reduction will indirectly encourage foreign businessmen to invest in Malaysia,” he said when commenting on the tax cut.
“I believe the reduction will lead to the creation of more jobs for Malaysians and higher income levels generally. Therefore it will improve the purchasing power of the people.”
Malaysian Institute of Taxation (MIT) council member Datuk Raymond Liew said the move would attract additional Foreign Direct Investment (FDI) into the country.
Another MIT council member Dr Jeyapalan Kasipillai said the tax relief on the purchase of books was a good decision as it would help create a more cultured society.
“It will also promote lifelong learning,” he added.
Tax consultant Stanley Selvakumar said the reduction would help create a better overall living standard among Malaysians, as their incomes would be higher.
He added that several other perks would also help the business climate in the country.
“By giving 10 years’ tax exemption for biotech ventures and Islamic banking, the Government will encourage more people to participate in these two emerging industries. Malaysia can thus be more competitive in the global market,” he noted.
In this way, Selvakumar said, the Government showed that it was more committed to providing a conducive environment to spur greater dynamism in the private sector.
“This will also enhance competitiveness in the private sector,” he added.
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