KUALA LUMPUR – Emir Research suggested the government increase the direct fiscal injection to RM150 billion from the current RM83 billion, to further stimulate the economy.
It said the government will have to increase the debt ceiling to 65% to make room for more borrowings and 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% to 18%, with the pre-existing schedule for the marginal rate intact in relation to the preferential tax rate for small and medium enterprises, which is 17% for the first RM600,000 payable and 24% on the subsequent balance for two years.”
Otherwise, it said, there should be a bolder measure in the form of a total tax exemption for two years.
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 immediately implemented.
“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.” – Bernama, August 3, 2021
