Deduction and Incentive for Hiring:
It is also this 2021 budget’s aim to encourage investments that enable retaining of jobs and at the same time creating new ones. Employers will receive a hiring incentive in the form of 20%, monthly income for the employee. Employers who want to put local workers in the positions previously held by foreign workers will receive a cumulative total of 60% for employee’s monthly income and other special incentives. It also covers the income for hiring the retrenched workers, disabled persons, and the long-term unemployed workers,
Bumiputera Entrepreneurs Support
This will assist the SMEs in key sectors like tourism, sustainable development, maritime development, and public transport among other sectors. It is aimed at capacity building programs such as professional development.
Buy Made in Malaysia Program
This is an incentive to promote the consumption of locally made products and thus motivate Small and Medium-Size Entrepreneurs to venture into the industry of local franchising.
Akin to this is an incentive to encourage Malaysians to shop online. This will help SMEs in the digitization and e-commerce sectors.
Micro-SME and SME campaign
This incentive is aimed at training SMEs, financing digital equipment, and sales assistance to encourage electronic commerce adoption.
This is rolled out to assist women entrepreneurs and to encourage more women to venture into entrepreneurship through micro-financing facilities. They would also receive guidance training.
A government that wishes to stand strong minds the citizens for they are its backbone. Therefore, tax rates should be aimed at making the lives of citizens better in terms of alleviating harsh conditions through better wages, job retention programs, and job creation programs. All this is determined by how the tax regime lays out its taxes.