3rd December 2020
PROPOSAL FOR 12th Malaysia Plan (RMK12)
- The Government should be more serious with the illicit cigarette problem in Malaysia.In the total sales of the country’s sales of cigarette, illicit stands at 65%. That means, the Government loses billions in tobacco tax. Retails have no business to do as customers turn to illicit ones. The difference in prices between legal and illicit cigarettes is great something like RM3.00 or RM4.00 for the illicit one. Legal cigarette cost Rm15 or do.
The economy of the country is bad so this is the ready tobacco tax the Government can collect immediately if the illicit cigarette is controlled properly.
2. CKHT (Cukai Keuntungan Harta Tanah): the aim of CKHT is to discourage people from speculation. Before the PH Government, the tax was gradual, 1st and 2nd years the tax was 30% and gradually reduce by the years. After 5 years, there will not be any CKHT tax.
This system should be reimplemented as it is not fair to the taxpayers after 5 years as the element of speculation does not prevail.
3. In view of the pandemic impact on small businesses like our service industry especially F&B sector, we propose that all the local authorities should make it a point to exempt license fees for the year 2021 so as to reduce the extra burden on them in order to assist them to overcome the financial difficulties.
Thank you.
Yours sincerely,
Dato’ Ho Su Mong
President
Malaysia Singapore Coffeeshop Proprietors’ General Association (MSCSPGA)
