Raggie Jessy Rithaudeen
محضير هاروس ڤرتيمبڠ كورڠكن قدر چوكاي كورڤورت اونتوق تيڠكتكن ڤنداڤتن
The Government of Malaysia needs to consider reducing corporate tax rates to encourage corporations headquartered here to bring in a significant chunk of their billions currently uncommitted to investments overseas.
The GoM should also consider allowing these corporations to repatriate that money with no tax involved, provided that they worked with Colleges and Universities to hire more graduates, effectively helping ease the unemployment crisis.
This would undoubtedly help the GoM improve its revenue stream as the new tax structure would broaden the tax base, strengthen the stock market and help fund crucial development and infrastructure projects.
It’s win-win all the way.
Corporations that hire more graduates would naturally be better equipped to expand business activity, resulting in stronger profit streams and potential investment dollars to help the GoM bankroll infrastructure and development projects.
The increase in profit streams and number of people employed by these corporations would also result in the GoM collecting more tax dollars, easily offsetting and perhaps even exceeding the impact of reducing corporate tax rates.
The expansion of business activity associated with these corporations would also increase the net worth of their assets and translate into immediate surpluses for the GoM, obtained though capital gains taxation ranging in the hundreds of millions.
The GoM could then use the surplus to strengthen Bank Pembangunan Malaysia Berhad, which, in turn, could offer private investors undertaking government projects very attractive loan rates.
Done properly, the GoM would effectively be tapping into a huge money pot currently collecting dust overseas that could help cut budget deficits and reduce the national debt in the longer run.