‘No corporate tax cut for now’

Nation’s financial situation must heal first, says Finance Minister

KUALA LUMPUR: Malaysia’s corporate tax cannot be lowered yet due to the high level of public debt, says Finance Minister Lim Guan Eng.

“(Reduction of corporate tax) is not possible for this year, next year or a couple of years because of the 1Malaysia Development Bhd (1MDB) scandal.

“We have to heal our nation’s finances first,” he told reporters after a luncheon organised by the Associated Chinese Chambers of Commerce and Industry in Malaysia (ACCCIM) in conjunction with its annual general meeting.

Lim said his personal position was that reducing taxes would

make Malaysia more attractive.

“I personally think corporate tax should be lowered.

“But looking at the country’s financial status now, we cannot lower corporate tax,” he said.

Malaysia’s corporate tax rate is at 24%. In comparison, Singapore’s corporate tax is at 17% while Vietnam’s stands at 20%.

During the luncheon, he said that the Government could have announced good news for corporate tax during the tabling of Budget 2019, if not for fugitive businessman Jho Low and others implicated in the 1MDB scandal.

“But I can assure you, we will not let him go.

“No matter where he goes, we will follow him,” Lim said, referring to Low Taek Jho and the (1MDB) saga.

Lim also reassured ACCCIM members that the Inland Revenue Board (IRB) would be more courteous to businesses.

“The tax department will not be harassing and threatening business owners, raiding offices.

“If they want to ask about tax matters, they will do it properly, (such as) writing letters and inviting businessmen to their office for discussion,” he said.

During the question-and-answer session, Lim also said the government had no plans to reduce the number of civil servants but would focus on improving their productivity.

“Malaysia has 1.6 million civil servants. The government is the main employer.

“We do not have such a plan or suggestion to reduce the number or cut their salary.

“But we will look at ways to improve productivity,” he said.

I personally think corporate tax should be lowered. But looking at the country’s financial status now, we cannot lower corporate tax. Lim Guan Eng