Corporate tax to stay at 24 percent - Guan Eng

The government has given an assurance that it will not raise the corporate tax of 24 percent in the near future, despite being faced with a weak fiscal position, said Finance Minister Lim Guan Eng.

He said the tax would remain with the prospect of a reduction if the government’s fiscal position improves.

"I feel the corporate tax can be reduced, but some time is needed,’ he said in his speech when officiating the National Tax Seminar 2018 in Kuala Lumpur today.

Also present was the chief executive of the Inland Revenue Board (LHDN), Sabin Samitah.

Lim said the government was currently in the process of recovery in terms of trying to nurse its finances back to health.

As such, he said, some time is needed towards ensuring the recovery of the fiscal position.

"(The recovery in the fiscal position) is not for the short or medium term,’ he added.

Meanwhile, Lim said the government will start making refunds under the goods and services tax (GST) and income tax refunds of RM37 billion to companies and individuals concerned, from early next year.

"So, it can be said that the issue of refunds for the GST and income tax, is seeing closure. Don’t waste time asking questions about this (at this seminar) as the government guarantees paying all refunds.

"The government will not use any of the money collected from the people, but will refund it,” he added.

The National Tax Seminar is an educational programme on taxation organised by the IRB after the tabling of the budget.

This is the 36th time it is being organised annually since 1974, and this year, it will be held at 24 locations throughout the country.  

--Bernama