Samenta disappointed with govt’s decision to discontinue tax reduction scheme for SMEs
The Small and Medium Enterprises Association Malaysia (Samenta) said it is disappointed that the tax reduction scheme for incremental income of companies is not retained in the 2019 Budget.
The previous government had in Budget 2017 introduced the tax incentive scheme to provide a reduction in income taxes by stages based on a percentage increase in income for the year of assessment 2017 and 2018.
“While we are disappointed that the tax reduction scheme for incremental income of SMEs is not retained, we are grateful that the government has incorporated a number of measures to assist SMEs,” Samenta’s chairman, policy and government relations, Datuk William Ng (pic) said.
Samenta said it was also delighted with the introduction of the credit system for sales tax deduction and Sales & Service Tax (SST) exemption for specific services provided by registered businesses to other registered businesses.
The other measures include the RM100 million fund for The National Entrepreneur Group Economic Fund (Tekun), the RM 20 million budget for Buy Malaysian Product Campaign, the RM 210 million fund to promote Industry 4.0, the RM 2 billion Green Technology Financing Scheme and the RM 2 billion soft loan for modernisation under the Business Loan Guarantee Scheme.
The association said it is also excited with the proposed National Fiber Optic and Connectivity Plan (NFCP) which has been allocated RM1 billion to develop broadband infrastructure across the country.
“This would make our economy more competitive, and opens up opportunities within the digital economy for SMEs across the country,” Ng added.