KUALA LUMPUR: Although Budget 2021 is the largest budget ever announced by the government, with tax collection under pressure from a slower economy, the government appears to have resisted the urge to amend the tax law.
Instead, the government has challenged businesses to remain steadfast and pull through together, said PricewaterhouseCoopers (PwC) PLT Malaysia Tax Leader, Jagdev Singh.
"Perhaps it is best not to change too many things during such times of great uncertainty, ” Jagdev said, adding that Budget 2021 may well be the toughest budget to craft.
He reiterated that the pandemic has changed the economic landscape considerably, having a significant impact on businesses as well as the rakyat.
The budget is certainly skewed to deal with the immediate need to alleviate the pain faced by the B40 and M40 groups, and at the same time, ensure businesses can be sustained through these tough times, he said.
Jagdev noted that Budget 2021 provides tax incentives to encourage manufacturing businesses to relocate to Malaysia, including a concessionary tax rate of 0-10 per cent for 10 years to selected businesses in the service sector that has a significant multiplier effect to the Malaysian economy.
Sectors related to Industrial Revolution 4.0 and digitalisation and manufacturing remain as the core of the overall business ecosystem, hence, it was timely for the government to introduce a game-changing incentive package, he added. - Bernama
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