Latest news with #LawrenceLow
BusinessToday
5 days ago
- Business
- BusinessToday
Postpone Implementation Of Stamp Duty On Employment Contracts
By Datuk Ir Lawrence Low The implementation of stamp duty on employment contracts by the Inland Revenue Board (LHDN) has caused concern among employers, particularly the small and medium enterprises (SMEs), whose businesses experience high staff turnover rates. While this stamp duty is stipulated and acknowledged under the Stamp Duty Act 1949, and is legally enforceable, we must also recognise that it is placing undue financial burden on businesses, especially SMEs, nationwide. This is further compounded by the recent increase in stamp duties penalties, which have been effective from Jan 1 this year. The sudden implementation, along with a lack of clear information, audit risks and high penalty rates, has placed unexpected pressure on employers, particularly within the SME sector. SMEs are now facing fines of up to 20% of the stamp duty owed or a minimum penalty of RM100 for each contract that is stamped late. With the cost of complying with this new stamp duty, along with the added risk of penalties for backdated employment contracts, a majority of SMEs are feeling the strain. This could cause disruption of business operations, hindering of staff employment and may even affect the salaries of existing employees. Therefore, MCA Economic and SME Affairs Committee urges the government to grant an amnesty period, allowing employers to voluntarily stamp past contracts without facing penalties. We also call on LHDN and the government to provide official guidelines and conduct dedicated briefings or workshops for the SME sector to ensure they are not unexpectedly penalised. Appropriate consideration should also be given to small and micro enterprises within these sectors with lower annual incomes. To add on to this, any future enforcement and implementations should be carried out with adequate notice and clear communication. We recognise the government's need to increase national revenue. However, we urge that this policy be implemented equitably, in a phased manner and with careful consideration of the challenges faced by Malaysians in reality, so as to not impose further strain on an already vulnerable sector. Related
The Star
30-04-2025
- Business
- The Star
Reconsider egg price control withdrawal, subsidy removal, MCA VP urges govt
PETALING JAYA: The government should reconsider its decision to gradually withdraw price controls and subsidies for the egg production industry, says MCA vice-president Datuk Lawrence Low. Low expressed concern over the complete removal of the RM0.10 subsidy per egg scheduled for Aug 1, warning it would increase monthly household expenses by RM15 for a family of five, based on an average consumption of one egg per person per day. "The subsidies were introduced to cushion the impact of rising production costs following the Covid-19 pandemic and the ongoing Ukraine-Russia war, which have caused import prices for corn and soybeans to soar. "The government's claim that production costs have stabilised is simply unreasonable, given the continuing conflict and the uncertainties posed by the United States' retaliatory tariffs," he said on Wednesday (April 28). Low said the government should be transparent if it is facing fiscal challenges due to national debt, which has reached RM45.3bil as of April 30. "Should the citizens bear the burden of repaying the government's debt? "Where has the revenue from the Sales and Service Tax, which rose from 6% to 8%, gone? "And what about the income from newly introduced taxes, especially when the country has been receiving billions in foreign investments?" he questioned. Low also raised concerns about the rapid increase in national debt and the apparent lack of solutions. "Why has the national debt escalated so quickly, placing the burden on the public? Where are the solutions to these issues?" he said, adding that leaders from the Pakatan coalition would also raise similar concerns and criticisms if they were in opposition today. The Agriculture and Food Security Ministry said on Wednesday the government has agreed to end the price control on chicken eggs and reduce the egg subsidy rate from RM0.10 to RM0.05 per egg, effective May 1, 2025. The egg subsidy will be completely abolished on Aug 1, 2025.
