FMM wants lower corp tax in 2013 Budget

The Federation of Malaysian Manufacturers (FMM) is pursuing its push to the government to introduce a more competitive

corporate tax in the 2013 Budget.



Vice-President Raja Datuk Abdul Aziz Raja Muda Musa said
manufacturing was a very important sector, contributing about 29 per
cent to the country's gross domestic product (GDP).


"Besides reducing corporate tax, we also hope the government will
offer some incentives to attract more domestic and foreign direct
investments (FDIs)," he told reporters after attending a FMM-hosted
conference on Indonesia Market Outlook and Entry Strategies.



In the budget, to be tabled by Prime Minister Datuk Seri Najib Tun
Razak in parliament on Sept 28, Abdul Aziz hoped the government would
reduce corporate tax to attract more FDIs besides providing incentives
to compete with other countries.






"Incentives expected are tax holidays for installing new machinery,
equipment and upgrading incentives for manufacturing plants," he said.



Abdul Aziz said although lowering corporate tax would reduce
government revenue, the loss could be offsetted by implementing the
Goods and Services Tax (GST).



"We've to look at other countries before revising our corporate tax
as it should be competitive to attract investments," he said.



Despite many calls by FMM over the past few years to the government
to revise downwards corporate tax, Malaysia's corporate tax still stood
at 25 per cent.



Meanwhile, the Malaysia External Trade Development Corporation
(Matrade) Chief Executive Officer Dr Wong Lai Sum said the government's
seriousness over the current business environment would be reflected in
the 2013 Budget.



"The provisions in the budget are expected to improve the business
environment in the country, thus leading to higher viability and propel
the country's economy forward," she added. -- Bernama