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Should door tax be deducted during slow economical movement?

The Ministry of Federal Territories is looking into giving deductions to all door taxpayers in Kuala Lumpur, Putrajaya and Labuan as an incentive to ease their burden.

According to its Minister Tan Sri Annuar Musa, the deduction of the door tax will be in a form of payment via installment

“At this difficult time, what’s wrong with us sacrificing, what’s wrong with returning a few percent to the taxpayer money and this matter is being studied in detail, but basically, I have given my consent.

“Installment payments, providing rebates and eliminating those penalties are among the incentives we do for the entire Federal Territory.

“Although Kuala Lumpur is serious in terms of the (economic) impact on its citizens, we are also confident that it will recover as soon as possible because here there is room to earn a living, increase employment opportunities,” he said in Bicara Naratif interview with RTM.

However during this pandemic, should the government focus more on pushing the economical structure that is in a downfall rather than just deducting the door tax?

Yesterday, it is reported that cautious market sentiment led Bursa Malaysia to close lower today in line with the performance of other regional bourses, with the key index down 1.05 per cent

The FTSE Bursa Malaysia KLCI (FBM KLCI) market index fell 16.81 points to 1,572.24 from 1,589.05 on Friday.

Across the market, losers outnumbered gainers by 784 to 309, while 393 counters were unchanged, 711 untraded and 17 others suspended.

Although the number of daily COVID-19 Malaysia cases dropped to 4,911, the news could not offset the market anxiety caused by the shadow of the rate hike by the US Fed.

In a related note, Executive Director of the Economic Action Council (AEC), Prof Tan Sri Noor Azlan Ghazali said the decline in the income level of the middle income group (M40) which has slipped into the low income group (B40) category is feared to affect the quality of life and survival of the group.

According to Head of Economic and Political Risk Research Unit, Universiti Utara Malaysia (UUM) Prof Madya Dr Irwan Shah Zainal Abidin the country’s economic growth contracted at a rate of 17.2 percent in the second quarter of 2020.

“In fact, in April 2020 alone, the country’s economy has shrunk at a rate of 28.8 percent, one of the worst in the country’s history”

“When economic growth contracts, one of the direct effects that the economy will experience is an increase in the unemployment rate. It increased from 3.2 percent in January 2020 to 5.3 percent in May 2020.” he said in an article

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