Malaysia today revealed a RM20 billion package of tax reliefs and subsidies to stimulate the economy hit by the coronavirus (Covid-19) outbreak.
The stimulus package valued at RM20billion is anchored on 3 strategies:
- Mitigating impact of COVID-19
- Spurring rakyat centric economic growth
- Promoting quality investments,
The objectives are to ease the cash flow of affected businesses, assist affected individuals and stimulate demand for travel and tourism.
Economic Stimulus Package’s highlights:
- Personal income tax relief up to RM1,000 on expenditure related to domestic tourism.
- Eligible to digital vouchers for domestic tourism of up to RM100 for domestic flight, rails and hotel accommodations.
- RM500mil is provided for vouchers and tourism promotion
- Benefit 100,000 Malaysia: RM50mil to subsidies short coursed in digital skills and highly skilled courses.
- Retrenched workers can rely on the employment insurance systems (EIS) with a current fund of RM1.1bil
- Deferment of monthly income tax instalment payments for businesses in the tourism sector.
- Companies affected by the Covid-19 to be allowed to revise their profit estimates for 2020 with respect to monthly income tax instalment payments without penalty.
- 15% discount in monthly electricity bills to hotels, travel agencies, airlines, shopping malls, and convention and exhibition centres for 6 months (April 2020 to September 2020)
- To exempt Human Resource Development Fund (HRDF) levies for hotels and travel-related companies.
- To exempt the 6% service tax for hotels (effective from March to August 2020)
- Bank Simpanan Nasional will allocate RM200mil for micro credit financing at 4% interest.
- The approval process for fund application at Bank Pembangunan under the Tourism Infrastructure Fund of RM 1.5bil will be hastened;
- All banks to lessen the financial burden of the rakyat by a delay in repayment or restructuring of loans.
- Government will provide a one-off RM600 payment to taxi drivers, bus drivers, tour guides and rickshaw riders.
- token of appreciation: RM400 will be given to doctors and medical personnel, and RM200 to immigration personnel
- RM100mil on a matching grant basis to HRDF to fund an additional 40,000 employees from the tourism and other affected sectors.
- Bank Negara Malaysia to provide Special Credit Guarantee of RM2bil for SMEs at 3.75% interest.
- Malaysia Airports Holdings Bhd to reduce rental of its retail space at the airport and reduce the landing and parking charges.
- EPF contribution rate by employee to be reduced by 4% from 11% to 7%.
- EIS will increase the claimable training cost from RM4,000 to RM6,000 for the affected sectors.
- Agrofood facility of RM1bil will be provided by BNM at an interest cost of 3.75%
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