PENANG Chinese Chamber of Commerce (PCCC) has called for a reduction in personal and company taxes to stimulate the economy which is badly hit by the Covid-19 pandemic.
PCCC president Datuk Seri Hong Yeam Wah said while there might be a temptation to increase taxes as a way of reducing the national debt, the Government should instead exempt taxes for those earning less than RM100,000 a year.
“Corporate taxes should also be reduced for large, small and medium enterprises by at least 2% to help them overcome this difficult period, ” said Hong when officiating PCCC’s 2020 Annual General Meeting on Friday.
“We are hopeful that Budget 2021 to be tabled in November will bring good news to this effect and help the market and the people to attract foreign investments and create a pro-business environment, ” he said.
Hong said with the current economic downturn, there is an urgent need for the Government to roll out more facilities and projects to stimulate the economy and drive the construction industry, which would create business and job opportunities.
PCCC is calling for an extension of the automatic deferment of personal and business loans or financing repayments until Dec 31, rather than resuming the repayments when the moratorium ends on Sept 30.
“Many are still facing financial difficulties and there is a lot of uncertainty, ” he added.
Hong added that Bank Negara Malaysia could consider further cuts to the overnight policy rate which was cut to 1.75%, the lowest rate in history.
“The vicious competition in local politics and even the manipulation of racial and religious issues have caused many businesses and people to worry about our economic prospects.
“An early general election will allow people to make new choices which can be a solution to the present situation.
“A stable government can formulate pro-business policies and do a good job in nation-building.”
Hong called for the acceleration of infrastructure projects such as Penang Transport Master Plan and Penang International Airport expansion which can drive the construction sector and stimulate the state’s economy.
A total of 102 members attended the AGM and Special General Meeting.