Drop in revenue expected

Ayub says among the incentives given by the government is a 50% discount in rental fee to traders.

ISKANDAR PUTERI: Local councils in Johor are expected to lose more than RM12mil in revenue as the state government continues to help small businesses face challenges from economic uncertainties due to the Covid-19 pandemic.

State local government and housing committee chairman Ayub Jamil said the government had and would continue to carry out various initiatives through the local councils in helping small traders, including small and medium enterprises (SMEs) during such a difficult period.

“Among the initiatives include giving the traders payment exemption incentive for all types of licences.

“This will benefit traders involved in carrying out business activities at night markets, morning markets and daily markets as well as mobile and static traders, ” he added.

Ayub said this in his reply to questions posed by Rosleli Jahari (PN-Johor Lama) and (BN-Pasir Raja) on whether the state government would carry out more initiatives to help small traders affected by the pandemic during the state assembly sitting here.

He pointed out that for 2021, the government would widen the exemption payment to include SME traders.

Ayub, however, said only registered SME traders that were under the micro category and already had a business licence from the respective local council were eligible for the incentive.

“This involves SME traders who rent premises owned by local councils and public markets.

“It is estimated that about 36,353 registered SME traders and small traders qualify for the incentive throughout Johor, ” he added.

He said by providing this incentive, local councils would lose about RM5.1mil in licence payment collection.

Ayub added that another incentive given by the government was a 50% discount in rental fee to traders.

He said these traders were renting some 10,692 stalls owned by the local councils including at public markets.

“The discount is also given to 34,875 sites at both morning and night markets. The estimated loss in revenue following the discount is about RM7.6mil, ” he added.

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