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Friday, November 1, 2013

Budget did not tackle issue of continuous budget deficit

Posted on 25 October 2013 - 09:41pm
Last updated on 25 October 2013 - 10:03pm

Datuk Seri Stanley Thai
Group Managing Director
Supermax Corp Bhd
GST Implementation of GST is fair. This is because there will be a wider pool of tax contributors to government revenue. However, the flip side would be that it will add financial burden to the poor and to those who are in lower income bracket that have received BR1M and other government goodies.

So, we are back to square one. The poor is not getting financial assistance despite the implementation of BR1M.

There is also no mention as to whether material supply to manufacturing is subjected to the goods and services tax (GST).

In many countries, there are GST or value added tax (VAT) rebates for goods and services supplied to export oriented industry.

We hope the federal government will exempt the Exempt Export Services from paying GST. This is to ensure products made in Malaysia remains competitive globally.

Budget deficit and government debts
The budget speech did not address or touch on how Federal Government will tackle the continuous budget deficit or curb expenditure to reduce the huge government debts. With over RM260 billion annual budget, this reduction is marginal.

Tourism and curbing crimes
Finally, we are seeing light at the end of tunnel. Safety and security remain the major concern of the ordinary Malaysians and foreigners visiting the country. Effectiveness in curbing crime will certainly boost the tourism industry and certainly boost the confidence of ordinary citizens of Malaysia.

Corporate tax reduced by 1% to 24%
This is good news for the manufacturing sector including glove manufacturers. However, there are trading nations such as Singapore and Hong Kong which have far lower taxes.

We hope the government will continue to reduce company/corporate taxes yearly in line with our neighbour Singapore.

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