Budget 2005 is expected to continue to focus on small- and medium-sized enterprises (SMEs), and provide new impetus to the agriculture, service and health tourism sector, says Ernst & Young Tax Consultant Sdn Bhd's executive director, Kenneth Lim.
He said that continuous focus on the SMEs and the agriculture sector was crucial for the country's economic growth.
“In many countries, SMEs’ contributions to the economy are well beyond 10 per cent. In Malaysia it is below 10 per cent. We should push for it to go beyond this current level,” he said in an interview.
He added that to encourage the SME sector, tax should be reduced to 15 per cent, while the threshold for chargeable income should be increased to RM1m (US$263,027).
“This would spur more SMEs to start up,” Lim said.
