Emir Research Calls on Government to Increase Malaysia’s Direct Fiscal Injection to RM 150 billion | Malaysia

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A view of the city skyline during the Movement Control Order (MCO 3.0) in Kuala Lumpur on July 1, 2021. – Photo by Firdaus Latif

KUALA LUMPUR, Aug 3 – Emir Research has proposed to the government to increase the direct tax injection from Ringgit 83 billion to Ringgit 150 billion in order to further stimulate the country’s economy.

He said the government will need to raise the debt ceiling to 65% to make room for more borrowing and to satisfy the lingering appetite for safe assets in the form of government bonds.

“In terms of corporate tax, there should be tax cuts from the current 24% to 18% with the pre-existing marginal rate timeline intact versus the preferential tax rate for small and medium-sized businesses (SMEs). ), which is 17% on the first 600,000 RM payable and 24% on the next balance for two years, ”the research house said in its own article,“ From Regulatory Incentive to Tax Incentive “.

Otherwise, there should be a bolder measure in the form of a full tax holiday for two years, he said.

Given the prolonged foreclosure and lingering economic uncertainty, the research house also called for the immediate implementation of a bankruptcy or insolvency moratorium of up to one year.

“This further strengthens the current position of the debtor who remains fully responsible for the business for the interim period of up to one year,” he said. – Bernama


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