Corporate and individual taxes are likely to be reduced by 1-2% in the 2010 budget, according to the Malaysian Institute of Economic Research (MIER) executive director Datuk Dr Mohamed Ariff Abdul Kareem said the tax reduction would have positive impact on the economy. He said GST taxed on consumption and not income, thus providing an incentive for people to work harder and earn more.
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thesun 2009-10-15 page13 mier expects corporate and personal tax cuts
Corporate and individual taxes are likely to be reduced by 1-2% in the 2010 budget, according to the Malaysian Institute of Economic Research (MIER) executive director Datuk Dr Mohamed Ariff Abdul Kareem said the tax reduction would have positive impact on the economy. He said GST taxed on consumption and not income, thus providing an incentive for people to work harder and earn more.
Corporate and individual taxes are likely to be reduced by 1-2% in the 2010 budget, according to the Malaysian Institute of Economic Research (MIER) executive director Datuk Dr Mohamed Ariff Abdul Kareem said the tax reduction would have positive impact on the economy. He said GST taxed on consumption and not income, thus providing an incentive for people to work harder and earn more.
KUALA LUMPUR: Sime Darby Bhd has successfully signed Islamic programmes yesterday, where the proceeds will be use for acquisitions and capital expenditure, working
and personal tax cuts
capital requirements as well as to refinance certain debt obligations. In a statement, lead arranger Maybank Investment Bank Bhd said it involved Islamic Medium-Term Note (IMTN) Programme of RM4.5 billion and Islamic Commercial Paper KUALA LUMPUR: Corporate and indi- RM50,000. Goods and Services Tax (GST), Mohamed (ICP)/Islamic Medium Term Note Programme of vidual taxes are likely to be reduced by Mohamed Ariff said the tax reduction Ariff said: “It could be.” RM500 million with a Combined Master Limit 1-2% in the 2010 Budget, according to the would have positive impact on the economy He said GST taxed on consumption and of RM4.500 billion. Malaysian Institute of Economic Research as well as investors. not income, thus providing an incentive for The ICP/IMTN Programmes are collectively (MIER). This, he said, was very much in sync people to work harder and earn more. known as the Islamic programmes. The reduction would not affect the with the country’s long-term goals and “In Malaysia, there is a need for GST Maybank president and chief executive government’s revenue, MIER executive Prime Minister Datuk Seri Najib Razak’s because the number of people paying tax officer Datuk Seri Abdul Wahid Omar said the director Datuk Dr Mohamed Ariff Abdul liberalisation policy. is small, so everybody will chip in. Every- financial group was proud to be working on this Kareem said at a press conference here “It is the kind of tonic that the economy body is contributing because everybody is Video transaction to assist Sime Darby in meeting its yesterday. needs,” he added. consuming. So the tax base gets bigger,” medium- to long-term funding requirements. “Since 2010 will be a better year than For instance, Malaysia’s corporate tax Mohamed Ariff said. nasties He said the strength of the AAA-rated this year, then shaving off the tax rates is higher than its neighbours and reducing “The more you consume, the more you the key to Islamic Programmes reflected Sime Darby’s may be offset by increased income base. it to be close to that of its competitors will pay, so in that sense it is not regressive ... it’s England’s position as a leading conglomerate and the So I don’t think it will affect government’s boost investors’ interest, Mohamed Ariff a kind of harbinger,” he said. world’s largest listed oil palm plantation group. revenue,” he said when presenting a report said. While seeing the need for tax reforms success – Bernama on MIER’s economic outlook for the third This will also augur well with Malay- to diversify the tax basket, Mohamed Ariff pg 26 quarter 2009. sia’s plan to become a regional hub for felt the government was not prepared to Corporate tax is currently at 25% investment activities, he said. introduce the GST at the coming budget. TM upbeat on Streamyx while individual income tax is at 12% for chargeable income exceeding RM35,000 to Asked whether such a reduction was in preparation for the introduction of the He said it could, however, be included in the 2011 or 2012 Budget. – Bernama user target in Sabah KOTA KINABALU: Telekom Malaysia Bhd (TM) ‘Ringgit to strengthen to 3.30 against greenback next year’ is confident of reaching the 85,000 mark for its Streamyx broadband subscribers in Sabah KUALA LUMPUR: The Malaysian Institute of He said the local currency has not been market and regional bourses, dealers said. by year-end, said its general manager for the Economic Research (MIER) expects the ringgit appreciating as much as other regional cur- Mohamed Ariff said the monetary policy state, Sukkuriya Masri. to strengthen against the US dollar to around rencies despite the continuing downtrend. stance is expected to be fairly commutative Speaking to reporters at the Hari Raya 3.30 next year with the greenback continuing From Aug 1 to Sept 29, the ringgit ap- for remainder of the year, facilitated also by gathering with TM Sabah yesterday, he said to to weaken in regional and global markets. preciated by 0.9% vis-a-vis US dollar, due to the absence of inflationary expectations in achieve this, the company had to recruit only The ringgit has been hovering at 3.3880 to favourable investor sentiment and increased the near term. another 5,000 subscribers as it had 80,000 at the US dollar. risk appetite towards high-yielding regional Hence, the MIER expects the Overnight present. MIER executive director Datuk Dr Moham- currencies. Policy Rate (OPR) to be relatively unchanged “We maintained our last year’s target of ed Ariff Abdul Kareem told a media briefing The ringgit opened higher against the US at least until 2010 or when the economy 20,000 new Streamyx subscribers annually. yesterday the ringgit is still undervalued with dollar yesterday at 3.3880, from 3.3900 on recovers, both domestically and externally, We have recorded 15,000 new subscribers more room to grow in the medium term by Tuesday on commercial buying support as he said. to date, so we are confident of reaching the 2012 and possibly touching 3.00 per dollar. well as positive sentiment on the local stock Currently, the OPR is at 2%. – Bernama target. – Bernama