Budget’s direction in new normal – the indirect tax
Head of Indirect Tax, Ng Sue Lynn commented that the Budget requests/ wishlists will have to be more targeted now.
While the pandemic does not discriminate against any sectors of the economy, it is undeniable that small and medium enterprises (SMEs), which are an important backbone to the country’s development, have been hard hit. Hence, Budget 2021 needs to also have an increased focus on their recovery and sustainability.
Additionally, the measure introduced by the government to give import duty and sales tax exemption on specific goods and equipment for healthcare should be extended to other manufactured goods, to stimulate demand. In this challenging time when cashflow is vital, providing exemptions to local manufacturers from charging sales tax (or even a reduced rate) would be a welcome relief.
Read the full online article here as published in The Star
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