Public Finance reform is central to encouraging investments and instilling business confidence in Malaysia. We need to reform our public finances to create the fiscal space to allow the Government to invest in other programmes that allow us to expand our capabilities and attract investment. That space can be created if we are relentless in our pursuit towards transparency, removing duplication, eliminating wastages and being forensic in our targeting. The Public Finance SRI aims to achieve this by introducing a range of measures which include efficiency, widening the tax base and improving customs enforcement quality.
|List of Initiatives
|Improve Tax Compliance and Administration (6)
- Widen Field Audit & Investigation Coverage.
- Widening the Tax Base.
- Improving Efficiency in Tax Submission & Tax Collection.
- Revise depreciation rate of gazetted value of imported used cars.
- Audit based control on exporters and importers of liquor and cigarette in duty free islands & Free Commercial Zone.
- Enhanced Customs' enforcement/audit.
|Rationalisation of Corporate Tax Incentives (4)
- 'Step-down' of Reinvestment Allowances.
- 'Step-down' (From Full to Partial) Exemption for Shipping Income.
- Review incentives in Promotion of Investments Act 1986.
- Review Single Deduction, Further Deduction, Double Deduction.
|Expenditure Control (5)
- Increase cess for rubber replanting.
- Cost effective funding mechanism.
- Reduce overseas training.
- Optimise asset utilisation.
- Reduce Govt. travelling expenses by 15%.
|Transparent Procurement (4)
- E-Bidding (enhance & widen scope).
- E-Bidding for Quotation & Tender (reduce existing threshold value from RM200k to RM50k)
- Value Management (VM).
- Enforce Procurement Plan.
- Eliminate Incompetent Suppliers/ Service Providers.
|Other initiatives (2)
- Broad-Based Tax (GST).
- Accrual Accounting.