KUALA LUMPUR: The government is introducing an additional tax deduction of up to RM50,000 on rental of premises and worker hostels to incentivise companies to participate in the Safe@Work initiative which is aimed at protecting workers.

Prime Minister Tan Sri Muhyiddin Yassin said the International Trade and Industry Ministry (MITI) would implement the Safe@Work initiative that would get employers' commitment to provide a conducive workplace and accommodation for workers.

The incentive would be provided to manufacturing and manufacturing-related service companies that were registered with MITI and had passed the Safe@Work compliance audit, he said when announcing the Strategic Programme to Empower the People and Economy (PEMERKASA) which included the Safe@Work initiative.

Muhyiddin said voluntary registration for the Safe@Work initiative would start on April 1.

He said companies that registered with MITI under the programme would be allowed to operate in a situation whereby workers in close contact were separated from the local community and other workers by placing them in "safe work bubbles" until all of them had been found safe from COVID-19.

In addition, Muhyiddin said, employers who conducted COVID-19 detection test were allowed to make additional tax deduction on the test cost for spending made up to Dec 31 this year.

Meanwhile, locally assembled motorcycles with engine capacity of 150cc and above will be given 100 per cent tax excise duty exemption from April 1 to Dec 31.

The government will also give an entertainment duty exemption on entrance fees into entertainment places such as theme parks, stage performances, sporting events and cinema shows in the Federal Territory.

-- BERNAMA