KUALA LUMPUR, Aug 3 — Emir Research has proposed the government increase direct fiscal injection from the current RM83 billion to RM150 billion to further stimulate the country’s economy.
It said the government will have to increase the debt ceiling to 65 per cent to make room for more borrowings and to satisfy the continuing appetite for safe assets in the form of government bonds.
“In terms of corporate tax, there should be tax cuts from the current 24 per cent to 18 per cent with the pre-existing schedule for the marginal rate intact in relation to the preferential tax rate for small and medium enterprises (SMEs), which is 17 per cent for the first RM600,000 payable and 24 per cent on the subsequent balance for two years,” the research house said in its own article titled ‘From regulatory incentive to fiscal incentive’.
Otherwise, there should be a bolder measure in the form of a total tax exemption for two years, it said.
In view of the prolonged lockdown and continued economic uncertainty, the research house also called for a bankruptcy or insolvency moratorium of up to one year to be implemented immediately.
“This further enhances the current position of the debtor as remaining fully in charge of the business during the interim period for up to a year,” it said. — Bernama