PETALING JAYA: The Malay Chambers of Commerce (MCC) urges the government to review the Stamp Act 1949 before implementing stamp duty on workers' contracts following the Stamp Duty Audit Framework introduced by the Inland Revenue Board (LHDN) on Jan 1.
The trade group said the enforcement of the stamp duty affected micro traders, and small-scale industries as it outlines the rights and responsibilities of audit officers and duty payors, the types of duties and penalties.
ALSO READ: Job contracts stamping rule could hurt SMEs
"The enforcement was rushed through, without any thorough comprehensive studies or taking into account workers' plight," its Malay Economy Action Council chairman Norsyahrin Hamidon said in a statement on Thursday (May 29).
He said MCC agrees with LHDN's approach to educate and encourage compliance to ensure the Act is followed and reduce the burden on penalties or punishment
"However, we hope the education phase reaches the grassroots through the involvement of the chambers before it is enforced and is not just an announcement.
ALSO READ: Stamp duty on employment contracts burdens businesses, says association
"The issues involving cooling off period, waiver mechanism, penalties and punishments need to be clarified as it is confusing.
"Among others, the waiver on stamp duty for workers with a monthly salary of RM300 and below is outdated and does not reflect the present salary structure and the labour market," he said.
Norsyahrin said MCC was looking for an amicable solution and would like to discuss with relevant agencies, including the LHDN and the Finance Ministry to share the concern of bumiputra traders and to receive a detailed clarification.
"We are willing to work with the government. We also share our concerns with the National Chambers of Commerce and Industry Malaysia, with the view that more time should be given for more companies to be exposed.
"At the same time, we urge the government to review the Stamp Duty on Contract Workers and postpone the implementation until the Stamp Duty Act 1949 is reviewed again, " added Norsyahrin.
