Business

Published: Monday October 19, 2009 MYT 12:54:00 PM

Survey: ACCA members want increase in 'sin' and luxury goods tax


KUALA LUMPUR: A survey among members of the Association of Chartered Certified Accountants (ACCA) indicated they want the government to increase the "sin" and luxury goods tax, while strengthening the collection of the sales and services tax, as a way to enhance revenue.

The survey, which drew a response from 417 ACCA members in September, also found that 91 per cent of respondents agreed that personal tax should be further reduced to boost confidence and encourage spending, which is critical to the retail sector as well as overall economic growth.

"The lower income group would also appreciate this caring gesture by the government. Options of tax deferment, more personal rebates and relief are also recommended," Jennifer Lopez, the acting country head of ACCA Malaysia said in a statement here on Monday.

Lopez said 75 per cent of the respondents believed that Malaysia is not yet ready for the implementation of the GST as the system is not fully in place.

"Inadequate training as well as guidelines for implementation, the uncertain economic conditions with small medium enterprises (SMEs) businesses said to be most affected," she added.

Meanwhile, 84 per cent of respondents said that more should be done to ensure the survival and growth rate of SMEs.

Of the respondents, 54 per cent believed that a lower tax rate for SMEs would ensure this.

"The introduction of green taxes such as a plastic bag tax will spur technological innovation in order to promote sustainable development and green initiatives," Lopez added. - BERNAMA

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