KUALA LUMPUR: Eversendai Corp Bhd hopes that the government will look at tax reductions as well as incentives for the upcoming Budget 2016, to ensure the country grows its manufacturing, industrial and construction footprint.
Managing director Tan Sri A K Nathan said this includes the reduction in corporate tax rate, real property gains tax rate, personal tax rate and goods and services tax (GST) as well as provision for incentives including export incentive.
“While tax is a positive contributing measure to the country’s economic stability, there is room for further enhancements. The government should consider reducing the tax rate as well as providing incentives to stimulate the manufacturing, industrial and construction industries as well as revive the dampened property market," he said.
He added it could also provide more disposal income of the Rakyat and generate employment.
Nathan said besides reducing the GST rate, the government should also consider to shorten the refund period for GST and expand the zero rated list of goods and services which will ultimately benefit businesses and as well as the Rakyat.
Meanwhile, he said while focusing on developing the skilled labour workforce in the country, the government should also address concerns about the escalating cost of foreign worker recruitment, which is becoming a huge financial burden to businesses.
“This can achieved by driving further usage of Industrialised Building System (IBS) to reduce foreign workers and simultaneously improve quality and productivity. Incentives can be offered to encourage contractors to switch to IBS,” he said.
To address the escalating cost of foreign workers, he also proposed for the abolishment of the current 10-year work permit cap for foreign workers.
“The rationale for this request is based on the premise that by retaining the skilled foreign workers, business can increase productivity by trimming training downtime, and improve overall efficiency,” said Nathan.