Business community hails cut in direct tax - MICCI

The business community welcomes the projected reduction in direct taxation under Budget 2015 unveiled by Prime Minister Datuk Seri Najib Tun Razak, says Malaysia International Chamber of Commerce and Industry (MICCI).

Its executive director, Steward J. Forbes, said the government has done the right thing by proposing nothing in 2015, but a reduction of one percent of corporate tax in 2016.

"Najib has announced that when the Goods and Services Tax comes in, the government will take a look at the corporate tax.

"We do not expect the reduction of corporate tax in first year," he said after a post-budget roundtable discussion organised by the Asian Strategy and Leadership MICCI's hope was if the GST worked for the country, then (after 2016), the government would be able to give additional reduction in corporate tax, provided it balanced with indirect taxes.

To enhance fiscal governance, Budget 2015 Budget proposed that for year of assessment 2016, corporate income tax would be reduced by one per cent to 24 percent, he said.

"By bringing down corporate tax, we can bring more business to Malaysia," he said.