An MPs suggestion for a tax on undistributed company profits or earnings has met resistance from trade associations.
The corporate savings tax proposal was made by Permatang Pauh MP Fawwaz Jan who told the Dewan Rakyat the tax should be imposed in line with Islamic principles of wealth-sharing. Malaysian International Chamber of Commerce and Industry president Christina Tee said that cash handouts fall within the purview of the government and NGOs, not businesses.
Economist Barjoyai Bardai of Universiti Tun Abdul Razak said the proposed corporate savings tax should only be implemented on a voluntary basis and with incentives to sweeten the deal for companies to participate.
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