Head of Indirect Tax at PKF Malaysia, Fan Kah Seong, expressed SMEs’ expectations for more financing assistance with lower interest rates to alleviate their burdens and facilitate their post-pandemic recovery.
Fan Kah Seong emphasized the significance of SMEs as the backbone of the Malaysian economy and stressed the importance of continuous government support for their growth.
Regarding SMEs’ expectations for Budget 2023, Fan highlighted the need for a robust strategy that can help local businesses navigate the anticipated economic challenges in the coming year, including fears of a global economic slowdown and rising inflation.
In particular, SMEs are hopeful for a reduction in the SME tax rate from the current 17% to 15%.
Furthermore, Fan urged government institutions, especially the Finance Ministry, to enhance their strategies and plans to effectively address SMEs’ cash flow concerns.
He also expressed the hope that no new taxes, including the reintroduction of the Goods and Services Tax (GST), will be introduced in 2023, considering the anticipated challenging economic conditions. Additionally, SMEs hope that no sales tax will be imposed on low-value goods in e-commerce.
In related news, Law Minister Datuk Seri Wan Junaidi Tuanku Jaafar confirmed that Budget 2023 will be presented as scheduled this Friday, dismissing rumours of the dissolution of Parliament prior to the budget announcement. Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz will table the budget at 4 pm on October 7.
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