Finance minister: Reduction of corporate tax possible when tax base is broadened and growth stronger | Malay Mail

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Finance minister: Reduction of corporate tax possible when tax base is broadened and growth stronger

KUALA LUMPUR, Sept 2 — Malaysia can’t afford a cut in corporate tax, which is currently at 24 per cent, unless the country’s tax base is broadened and the country maintains a stronger than average growth trajectory, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said today.

Malaysia’s corporate tax is among the highest within Asean. Singapore has the lowest at 17 per cent, Vietnam, Thailand and Cambodia at 20 per cent and Indonesia at 22 per cent. In a Pre-Budget Statement, the MoF said that among the recommendations in the study is the implementation of the Special Voluntary Disclosure Programme for indirect taxes administered by the Royal Malaysian Customs Department.

As for addressing revenue leakage, MoF in the 17-page document said the Multi-Agency Working Group, chaired by the MoF to formulate strategies to curb smuggling activities, has been further strengthened by the participation of the Malaysian Anti-Corruption Commission and the National Financial Crime Prevention Centre.

On other developments, the finance minister said the government will not tap into the national reserves to fund the upcoming budget. Commenting on political stability, he said the Keluarga Malaysia concept introduced by Prime Minister Datuk Seri Ismail Sabri Yaakob is focused on continuity and particularly on the Covid-19 challenges.

 

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