Corporate Tax

Entrepreneurs are advocating corporate tax cuts to assist climate the pandemic

Mohd Hafidz Rouhani

MIRI (September 20): Small and medium-sized enterprises (SMEs) and other businesses are calling on the government to review their requests for corporate tax rate cuts for 2021-2022 to help them cope with the difficult economic turmoil that is coming through the Covid-19 pandemic.

Sarawak Bumiputera Entrepreneurs Chamber (DUBS) information chief Mohd Hafidz Rohani said in a statement yesterday that the pandemic has hit almost everyone, which has resulted in many companies having to close due to financial difficulties.

“Other problems humanity faces during the pandemic include suicide due to stress, anxiety, and depression caused by behavior changes that result in unproductive work that may have resulted in cuts.

“We are aware that both the federal government and the federal states have made various financial aids available to SMEs, but may only be able to do so to a limited extent.

“Geran Khas Prihatin (GKP) 4.0, which is supposed to provide additional support to the company after the country has transitioned from phase 2 to phase 3 of the National Recovery Plan (NRP), may temporarily relieve business owners of financial challenges, but it does not solve the core problem .

We have also seen loan applications from government agencies such as Perbadanan Usahawan Nasional Bhd (PUNB), Majlis Amanah Rakyat (Mara), Tabung Ekonomi Kumpulan Usaha Niaga (Tekun) and Sarawak Economic Development Corporation (SEDC) become more refined and simpler for SMEs.

“But what we were hoping for is a gradual increase in purchasing power and a lower corporate tax rate that we believe can effectively prop up a business,” said Hafidz.

He also hoped that the Sarawak government would be able to bring the pandemic under control so it could reopen its tourism sector.

“The reopening of the tourism sector in Langkawi as part of the travel bubble pilot program shows that it is possible to travel safely again during the pandemic. We hope that Sarawak will welcome travelers here again and stimulate the local economy, ”said Hafidz.

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