Raise corporate tax rate on big corporations, says PKR MP

Raise corporate tax rate on big corporations, says PKR MP

Pasir Gudang MP Hassan Karim says this is better than taxing the rakyat to boost the government's coffers.

Pasir Gudang MP Hassan Karim said Putrajaya should seek to lighten the load of the rakyat rather than adding to it by imposing higher, or additional, taxes.
KUALA LUMPUR:
A backbencher has proposed that the government raise the corporate income tax rate on large corporations from 24% to 27%.

Hassan Karim (PH-Pasir Gudang) told the Dewan Rakyat this was necessary to ensure greater government revenue could be distributed to Malaysians, with tax collection crucial for Putrajaya’s coffers.

“Tax collection is important for the country, but don’t torture the people (by raising their taxes). Instead, raise the corporate tax rate for these big companies.

“We want to lighten the load of the rakyat, not add to it,” he said while debating the Measures for the Collection, Administration and Enforcement of Tax Bill 2024.

Currently, companies with paid-up capital of RM2.5 million and below as well as less than RM50 million in income would be taxed 15% on the first RM150,000 they make, followed by 17% (RM150,001 to RM600,000) and 24% (RM600,001 and above).

The tax rate is fixed at 24% for other companies.

Calls to raise the corporate income tax rate are not new, but economists have warned in the past that such a move could deter investments and economic growth.

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