1.Tax Rebate for Individuals [Section 6A(2)]
Currently, a tax rebate is given to an individual with a chargeable income of RM10,000
and below. The tax rebate is RM110 for the individual and RM60 for his wife who is
not assessed separately.
It is proposed that the chargeable income ceiling be increased to RM35,000. Further,
the tax rebates are to be augmented to RM350 for the individual and RM350 for his
wife who is not assessed separately.
The proposed rebates and ceiling also apply to the wife where her husband elects
that his income be aggregated with hers and assessed in her name.
This proposal is to be effective from year of assessment 2001.
2. Election for Combined Assessment by Husband or Wife [Section
45(2)]
Under current legislation, a wife is automatically assessed separately on her income
from all sources. A wife may, however, elect for aggregation of her total income
with that of her husbandís and be assessed in his name.
It is proposed that either spouse may elect to have his or her total income aggregated
with the other spouseís total income and be assessed in the name of the other spouse.
The husband may only elect if his wife or none of his wives elect for combined assessment.
In the case where the husband has more than one wife, the election shall only be
made with one wife. The election has to be made in writing before 1st April in the
following year of assessment or any later date permitted by the Director General
(DG). Where the husband or wife is not resident for the basis year for a year of
assessment, he or she may only elect for aggregation with the spouseís income if
he or she is a citizen.
The proposed amendment is to be effective from year of assessment 2001.
3. Deduction for Husband [New Section 45A]
Presently, a husband is allowed wife relief of RM3,000 where the wife has no total
income or where the wife has made an election for combined assessment.
As part of a consistent effort to assist women taxpayers, it is proposed that the
wife be allowed a similar deduction in respect of her husband where her husband has
no total income or where he has made an election for combined assessment. A further
relief of RM2,500 will be granted if he is a disabled person. In a case where the
husband has several wives, this husband deduction will only apply to one wife.
The proposed amendment is to have effect from year of assessment 2001.
4. Deduction for Basic Supporting Equipment for Disabled Persons
[Section 46(1)(d)]
Current legislation provides for a deduction of up to RM5,000 in respect of the purchase
of any necessary basic supporting equipment by an individual for his own use, if
he is a disabled person, or for the use of his wife, child or parent, who is a disabled
person.
It is proposed that the deduction allowed for an individual be extended to his wife
if she has expended on basic supporting equipment for her own use, if she is a disabled
person, or for the use of her husband, child or parent, who is a disabled person.
Where an individual elects for combined assessment or has no total income, his expenditure
on basic supporting equipment will be deemed expended by his spouse.
The proposal is to be effective from year of assessment 2001.
5. Deduction for Education in Scientific, Technological or Vocational
Fields [Section 46(1)(f)]
It is proposed that the current maximum deduction of RM2,000 given to an individual
in respect of fees on a course of study be increased to RM5,000. The extended scope
for this deduction covers any course of study up to tertiary level in any institution
in Malaysia recognised by the Government undertaken for the purpose of acquiring
technical, vocational, industrial, scientific or technological skills or qualifications.
The proposal has effect from year of assessment 2001.
6. Deduction for Medical Expenses ñ Full Medical Examination [New
Section 46(1)(h)]
As a preventive measure and to enhance health consciousness, it is proposed that
a new relief of up to RM500 be granted for complete medical examination expenses
incurred by an individual on himself, his wife or child or in the case of a wife,
on herself or on her husband or on her child, and this deduction shall form part
of the deduction allowed of up to RM5,000 for medical expenses in respect of serious
diseases under Section 46(1)(g) of the Income Tax Act, 1967 (the Act). The same deeming
provision referred to in relation to Section 46(1)(d) above is also applicable to
Section 46(1)(g) and this RM500 deduction.
The proposal has effect from year of assessment 2001.
7. Deduction for Reading Materials [New Sub-Section
46(1)(i)]
It is proposed that a new relief of up to RM500 be granted in respect of expenses
incurred or deemed incurred in a basis year by an individual for the purchase of
books, journals, magazines and other similar publications for the purpose of enhancing
knowledge for his own use or for the use of his wife or child, or in the case of
a wife, for her own use or for the use of her husband or child. Evidence of purchase
by way of receipts is required. In the case of combined assessment, the maximum relief
of RM500 may be claimed.
The above proposal is to be effective from year of assessment 2001.
8. Life, Education, Medical Insurance Premium or Deferred Annuity
[Section 50(2)]
Currently, where the wife elects for combined assessment or has no total income,
any premium paid by her in respect of life, education, medical insurance or deferred
annuity shall be deemed expended by her husband so long as the deduction does not
exceed RM5,000 for life insurance premium, RM3,000 for education or medical insurance
and RM1,000 for annuity.
It is proposed that the life, education, medical insurance premiums or deferred annuity
expended shall be deemed expended by the husband of the wife who elects or by the
wife of the husband who elects for combined assessment. Where the wife or husband
has no total income, any premium paid by the wife or husband shall be deemed expended
by the husband of the wife who has no total income, or the wife of the husband who
has no total income, respectively.
This proposal is to be effective from year of assessment 2001.
9. Contribution to Employees Provident Fund (EPF) [Section
50(3)]
Currently, an individual is eligible for a deduction of up to RM5,000 in respect
of life insurance premiums and contributions to an approved scheme or the EPF made
by him. In the case of contribution to an approved scheme or the EPF, the contributions
must have been obligatory by reason of a contract of employment or rules of the scheme.
It is proposed that if a wife or a husband elects for combined assessment, the contribution
shall be deemed to have been made by the husband or the wife in whose name the assessment
was made in that year. The reference to a contract of employment shall be deemed
to include a reference to a contract of employment of the wife who elects or the
husband who elects.
This proposal is to be effective from year of assessment 2001.
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10. Collection of Tax Under Combined Assessment [Sections
103(8) and (9)]
Currently, where a wife elects for aggregation of her total income with that of her
husband and is assessed in his name, the DG may recover from the wife that part of
the tax that relates to her income.
With the move to allow a husband to elect for combined assessment, it is proposed
that the current legislation be extended to enable the collection of the portion
of the husbandís tax from him. It is further proposed that the portion of tax attributable
to the husband and wife in the case of combined assessment be determined by the following
formula :-
| Where |
A |
is the total income for a year of
assessment of the spouse who elects for combined assessment; |
| |
B |
is the aggregate total income of
the wife and the husband in the case where the husband elects for combined assessment;
or |
| |
|
is the aggregate total income of
the husband and his wife/wives in the case where the wife elects for combined assessment; |
| |
C |
is the tax charged for the year of
assessment on the combined assessment. |
The proposed amendment is effective from year of assessment 2001.
11. Set-off for Tax Deducted Under Combined Assessment [Section
110(12)]
Presently, where an election is made for combined assessment, for set-off purposes,
tax deducted from income of the wife is deemed to be tax suffered at source by the
husband.
With the move to allow a husband the right to elect for combined assessment, it is
proposed that the current legislation be extended to apply equally to the wife in
the case where the husband elects for aggregation of his total income with that of
his wife and be assessed in her name.
The proposed amendment will be effective from year of assessment 2001.
12. Exemption for Owner-Occupied Premises under Combined Assessment
[Section 128(2)]
Presently, an individual who is the owner of a residence and occupies it throughout
the basis year for a year of assessment will be exempt from tax on the annual value
of such property. In the case of combined assessment, the exemption continues to
apply to one property only and the residence owned by the wife is deemed owned by
the husband.
With the amendment introduced to Section 45(2), it is proposed that the current legislation
be extended to provide that the residence owned by the husband be deemed owned by
the wife for the purpose of the above exemption and occupation of a residence by
the husband be deemed to be occupation by his wife.
The proposal amendment is effective from year of assessment 2001.
13. Non-Resident Citizen Relief [Section 130(4)]
Currently, a relief is granted to an individual who is citizen but not resident in
Malaysia by reason of his employment which is exercised outside Malaysia in the public
services or the service of a statutory authority.
It is proposed that where election is made under Section 45(2), when computing total
income for purpose of claiming the above relief, that amount shall include the total
income of the wife who elects for aggregation or the total income of the husband
who so elects, as the case may be.
The proposed amendment will be effective from year of assessment 2001.
14. Incentive for Packaging Design
Currently, double deductions for the promotion of export are in respect of the following
expenses :-
| a. |
advertising abroad; |
| b. |
the supply of free product samples
abroad; |
| c. |
export market research; |
| d. |
the preparation of tender for the
supply of goods overseas; |
| e. |
the delivery of technical information
abroad; |
| f. |
exhibition goods and / or participation
in local or foreign trade / industrial exhibitions approved by the Ministry of International
Trade and Industry; |
| g. |
transportation charges for company
employees travelling abroad for business purposes; |
| h. |
accommodation expenses and living
expenses for Malaysian business people who travel abroad on official business subject
to an additional maximum deduction of RM200 a day; and |
| i. |
maintenance costs of sales office
established abroad to promote export. |
As packaging design is an important factor in determining successful export market
penetration, it is proposed that professional fees incurred in packaging design be
eligible for double deductions provided that such goods are of export quality and
the company employs local professional services.
The proposal is to be effective from year of assessment 2001.
15. Deduction for Information and Communications Technology Expenditure
[Section 34(6)(h)]
Currently, expenditure incurred on the provision of services, public amenities and
contributions to a charity or community project pertaining to health, housing and
infrastructure approved by the Minister of Finance is deductible from gross income
provided no further deduction is allowed in respect of the same expenditure under
Section 44(6) of the Act.
It is proposed that effective year of assessment 2001, the spheres of health, housing
and infrastructure be extended to include information and communication technology.
16. Deduction for Scholarships Awarded [New Section 34(6)(l)]
Currently, amounts incurred in respect of scholarships awarded need not be deductible
expenses when computing the adjusted income of a business.
It is proposed that expenses incurred by a company on the provision of a scholarship
to a student for any course of study leading to an award of a diploma, or degree
(including a degree at a Masters or Doctorate level) or the equivalent of a diploma
or degree undertaken at a higher educational institution established or registered
under the laws regulating such establishment or registration in Malaysia or authorised
by any order made under Section 5A of the Universities and University Colleges Act
1971, be allowed a deduction in ascertaining the adjusted business income.
In order to qualify for deduction, the following additional conditions must be fulfilled
:-
| a. |
The scholarship shall only be given
to a student :- |
| |
i. who is receiving full-time instruction
at a higher educational institution;
ii. who has no means of his own; and
iii. the total monthly income of whose parents or guardian, as the case may be, does
not exceed RM5,000; and |
| b. |
The scholarship shall not include
payments other than payments required by such higher educational institution relating
to the course of study and educational aids and reasonable cost of living expenses
during the studentís period of study at such higher educational institution. |
The proposal is to be effective from year of assessment 2001.
17. Deduction of Expenses for Obtaining Quality Certification
and Halal Certification [New Section 34(6)(m)]
It is proposed that expenses, not being capital expenditure, incurred by a company
to obtain certification for recognised quality systems and standards and halal certification,
evidenced by a certificate issued by a certification body as determined by the DG,
be deductible from gross income in the basis period in which the certificate is issued.
The proposal is to be effective from year of assessment 2001.
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18. Incentives to Increase Accessibility to Information and Communications
Technology (ICT)
Currently, various measures taken by the Government to widen public accessibility
to ICT include the following :-
| a. |
a tax rebate granted once in 5 years
of RM400 for the purchase of a computer; |
| b. |
loan for Government servants to purchase
a computer once in their tenure of service; and |
| c. |
withdrawal from the EPF by contributors
to purchase a computer for their children aged 10 years and above. |
Gifts of computers to employees are deemed as benefit-in-kind and hence taxable.
Also, there is no specific provision to allow such expenses as a tax deduction for
companies.
To further widen public accessibility to ICT, it is proposed that :-
| a. |
gifts of new computers by companies
to their employees are not deemed as benefit-in-kind and hence not taxable. On the
other hand, such expenses are tax deductible to the company; |
| b. |
contributions in cash and in kind
for ICT acculturation projects at local community levels be allowed as deductions; |
| c. |
individual taxpayers be granted a
tax relief of RM500 per year for purchase of books, including text books; |
| d. |
government employees can apply for
a computer loan once every 5 years; and |
| e. |
EPF contributors are allowed to withdraw
their contributions to purchase a computer for their own use. |
Incentives (a) and (b) are to be effective from year of assessment 2001 to year of
assessment 2003 whilst incentives (c) and (d) are effective from 28th October 2000.
19. Rentals of Motor Vehicles [Section 39(1)(k)]
Although it has been proposed that the qualifying plant expenditure in respect of
motor vehicles not licensed by the appropriate authority for the commercial transportation
of goods or passengers be raised to RM100,000, the maximum rentals deductible in
respect of such vehicles remain at RM50,000.
20. Approved Donations [Section 44(6) & (7)]
Presently, there is no restriction on the amount deductible in respect of any gift
of money made to an institution or organisation approved by the DG.
Thus, in a recent case, Sabah Berjaya Sdn Bhd vs Director General of Inland Revenue,
the Court of Appeal held that the entire donations made to an approved institution
equivalent to all profits or surplus funds of Sabah Berjaya be allowed. In the wake
of this case, it is proposed that the tax deduction on approved donations under Section
44(6) by companies be restricted to 5% of the aggregate income of the company.
The Finance Bill also seeks to introduce under the definition of ëorganisationí 3
new items namely :-
| a. |
an international organisation as
defined under the International Organisation (Privileges and Immunities) Act, 1992
carrying out such charitable activities as determined by the Minister; |
| b. |
an organisation established and maintained
exclusively to administer or augment a fund established or held for the purpose of
carrying out projects towards the acculturation of the community in information and
communications technology; and |
| c. |
a benevolent fund or trust account
established solely for the purpose of providing aid to an individual who has no or
insufficient means, or, in the case of a dependent individual, whose parents or guardian
has no or insufficient means to pay for the cost of medical treatment required by
such individual for a serious disease which is defined as AIDS, Parkinsonís disease,
cancer, renal failure, leukemia and other similar disease. |
The Finance Bill also provides that an approved institution or organisation is permitted
to apply not more than 25% of its accumulated funds at the beginning of the basis
period for a year of assessment to carry on or participate in a business provided
that profits or income derived therefrom shall be used solely for charitable purposes
or for the primary purpose of the institution or organisation for which it was established.
The carrying on or participation in a business shall not include the carrying on
of a business by an institution or organisation where :-
| a. |
the business is carried on in the
course of the actual carrying out of the primary purpose of the institution or organisation;
or |
| b. |
the work in connection with the business
is mainly carried on by persons for whose benefit the institution or organisation
was established. |
Further, an approved institution or organisation may carry out charitable activities
outside Malaysia with prior consent from the Minister of Finance.
The above proposals are to be effective from year of assessment 2001.
21. Takaful Business [Section 60AA]
The present tax treatment prescribed under Sections 60 and 60A of the Act for life
insurance, general insurance and inward re-insurance businesses applies similarly
to a takaful business. A takaful business is an insurance business based on Islamic
principles carried on pursuant to the Takaful Act, 1984.
It is proposed that a new subsection (2) be introduced to provide that in the application
of Section 60 or 60A to a takaful business, the management expenses which in that
business were charged to the shareholdersí fund will be deemed to be incurred from
the life or general business.
A takaful business will now enjoy the same tax treatment as that enjoyed by a conventional
insurance business.
This amendment is effective from year of assessment 1986.
22. Reserve Fund for Unexpired Risks for General Insurer [Section
60(9)(b)]
Currently, an insurerís reserve fund for unexpired risks at the end of a basis period
consists of :-
| a. |
25% of the net premiums (after deducting
re-insurance premiums payable) in respect of marine, aviation or transit policies;
and |
| b. |
40% of the net premiums (after deducting
re-insurance premiums payable) in respect of other general policies. |
It is proposed that the reserve fund for unexpired risks at the end of a basis period
in respect of other general policies be calculated based on the method of computation
as determined by the relevant authority regulating the insurance industry and which
is consistently applied to the net premiums of such policies.
The above proposal is to be effective from year of assessment 2001.
23. Cessation of Exemptions from Tax [New Section
127A]
Two tax cases involving National Land Finance Co-operative Society Ltd and MCI Society
Ltd appear to have given rise to the proposed new Section 127A. The Court of Appeal
concurred with the judgement of the High Court in the latter case that tax exemption
granted had not been removed by sufficiently clear words to achieve that purpose.
With effect from year of assessment 2001, the proposed new section clearly provides
that where any income of a person is exempt from tax by virtue of the repealed Sabah
Ordinance, Sarawak Ordinance or West Malaysian Ordinance, and the exemption is deemed
to have been made under Section 127, that exemption shall cease.
24. Remission of Tax ñ Other Relief [New Section
129A]
This new section is meant to empower the Minister for the purposes of Section 127
to provide any relief, as he thinks fit, which is not otherwise provided for in the
Act, in relation to the treatment of expenses, losses and capital allowances in arriving
at the chargeable income of a person.
This proposal is to be effective from year of assessment 2001.
25. Capital Allowances for Motor Vehicles [Subparagraph
2(2) Schedule 3]
Currently, the qualifying plant expenditure in respect of motor vehicles (other than
those licensed or permitted for the commercial transportation of goods or passengers)
is restricted to RM50,000 for capital allowance purposes. As a measure to reduce
the cost of doing business, the Minister of Finance in his Budget Speech has proposed
that this qualifying plant expenditure be increased from RM50,000 to RM100,000 if
the following conditions are met :-
| a. |
the motor vehicles are purchased
on or after 28th October 2000; |
| b. |
the motor vehicles have not been
used prior to the purchase; and |
| c. |
the total cost of the motor vehicles
does not exceed RM150,000. |
It is further proposed in the Finance Bill that where the qualifying plant expenditure
is incurred between the period 28th October 2000 to 31st December 2000, and that
period forms part of the basis period for the year of assessment prior to the year
of assessment 2001, that expenditure shall be deemed to be incurred in the basis
period for the year of assessment 2001.
This deeming proviso will encourage those whose year end has yet to close between
28th October 2000 to 31st December 2000 (for the year of assessment 2000) to purchase
motor vehicles during this period to qualify for the increased qualifying expenditure
for which a capital allowance claim will be made for the year of assessment 2001.
The above proposal is to be effective from year of assessment 2001.
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26. Application for Tax Exemption for Charitable Bodies (Para
13 Sch 6)
Currently, institutions or organisations which have been granted approval as a charitable
body under Section 44(6) of the Act for purpose of tax deductibility by donors are
required to make a further application, under Paragraph 13 Schedule 6 of the Act,
to the DG for approval for exemption from income tax.
It is proposed that institutions or organisations which satisfy the conditions described
below are granted tax exemption under Paragraph 13 Schedule 6 of the Act without
further application :-
| a. |
an institution or organisation approved for
the purposes of Section 44(6) so long as the approval remains in force; or |
| b. |
a religious institution or organisation which
is not operated or conducted primarily for profit and which is established in Malaysia
exclusively for the purposes of religious worship or the advancement of religion. |
It is further proposed that approvals under Paragraph 13 Schedule 6 of the Act granted
to institutions or organisations shall cease from year of assessment 2003. In order
to continue to enjoy the tax exemption, such institutions or organisations should
obtain the relevant approvals under Section 44(6) of the Act.
The proposal is to be effective from year of assessment 2001.
27. Reinvestment Allowance (RA)
Currently, RA is given to manufacturing and agricultural companies undertaking expansion,
modernisation, automation and diversification activities in respect of capital expenditure
incurred in the basis periods for 5 consecutive years of assessment beginning from
the year of assessment for the basis period in which the capital expenditure was
first incurred. Capital expenditure incurred after the 5 year period is not eligible
for RA.
In an effort to encourage greater domestic and foreign investment so as to accelerate
growth and further strengthen economic fundamentals, it is proposed that upon the
expiry of RA, companies that are manufacturers of promoted products or producers
of promoted food items be given accelerated capital allowance on capital expenditure
to be utilised within 3 years.
Applications for this incentive should be forwarded to the Inland Revenue by submitting
income tax declaration forms, together with a letter from the Malaysian Industrial
Development Authority certifying that the companies are manufacturers of promoted
products or producers of promoted food items.
This proposal is to take effect from year of assessment 2001.
28. Tax Incentives for Investment in Venture Companies
Currently, companies which invest in venture companies such as venture capital companies
(VCC) are given full income tax exemption for a period of 10 years provided that
70% of the funds invested in venture companies are at start-up, seed capital and
early stage financing.
To encourage investment in such high-risk sector, it is proposed that investments
in approved venture companies at start-up, seed capital and early stage financing
be given a deduction equal to the value of investment. Where the statutory income
is insufficient to offset the cost of investment, the excess will be carried forward
for future deduction. To qualify for the incentive, the investing company should
not dispose of its equity in the venture company until the venture company is listed.
Venture companies and the stages of financing are defined in the guidelines relating
to incentives for VCC issued by the Securities Commission.
The proposal is to be effective from year of assessment 2001.
29. Incentives for Food Production
Currently, group relief is available in respect of an approved food production project
(AFPP) which is defined as an agricultural project approved by the Minister of Agriculture
for the cultivation of maize for animal feed, cattle farming or any other activities
as may be prescribed by the Minister of Finance. In relation to an AFPP :-
| a. |
the application for approval must
be made on or before 31st December 1999; |
| b. |
the project must commence within
1 year from the date of approval; and |
| c. |
at least 80% of the sales, if any,
of the produce are made within Malaysia. |
It is proposed through the Finance Bill that with effect from year of assessment
2001 :-
| a. |
the last date for submission of an
application for an AFPP be extended to 31st December 2003; |
| b. |
the requirement that at least 80%
of sales of the produce be made within Malaysia be deleted; and |
| c. |
AFPP is redefined as an agricultural
project which is approved by the Minister by order published in the Gazette. |
To further encourage food production, it is proposed that additional tax incentives
be given to both the company which invests in the subsidiary company engaged in food
production project and the subsidiary company itself. These tax incentives are :-
First Alternative :
| a. |
the company which invests in the
subsidiary company engaged in food production be granted tax deduction equivalent
to the amount of investment made in that subsidiary; and |
| b. |
the subsidiary company undertaking
food production be given income tax exemption of 100% on its statutory income for
10 years commencing from the first year the company enjoys profit in which :- |
|
| i. |
losses incurred before the exemption
period is allowed to be brought forward after the exemption period of 10 years; |
| ii. |
losses incurred during the exemption
period is allowed to be brought forward after the exemption period of 10 years; and |
| iii. |
dividends paid from the exempt income
be exempted in the hands of the shareholders. |
|
Second Alternative :
| a. |
the company which invests in the
subsidiary company engaged in food production be given group relief for the losses
incurred by the subsidiary company before it records any profit; and |
| b. |
the subsidiary company undertaking
food production be given income tax exemption of 100% on its statutory income for
10 years commencing from the first year the company enjoys profit in which :- |
|
| i. |
losses incurred during the exemption
period is also allowed to be brought forward after the exemption period of 10 years;
and |
| ii. |
dividends paid from the exempt income
be exempted in the hands of the shareholders. |
|
The above incentives are granted with the following conditions :-
| a. |
the investing company should own
100% of the company that undertakes food production; |
| b. |
the eligible food products are as
approved by the Minister of Finance. For a start, the approved food products are
kenaf, vegetables, fruits, herbs, spices, aquaculture, beef and mutton; and |
| c. |
the food production project should
commence within a period of 1 year from the date the incentive is approved. |
Application for these incentives should be submitted for the approval of the Ministry
of Finance through the Ministry of Agriculture before 31st December 2003.
30. Incentive for Conservation of Energy
Currently, activities related to energy conservation are not eligible for tax incentives.
As a measure to reduce operating costs while promoting environmental preservation,
it is proposed that the following tax incentives be given :-
| a. |
For companies providing energy conservation
services :- |
| |
| i. |
Income tax exemption of 70% on statutory
income for 5 years or Investment Allowance of 60% of the capital expenditure incurred
within a period of 5 years which is to be utilised against 70% of statutory income. |
| ii. |
Import duty and sales tax exemption
on equipment (used in the project) that is not available locally. For equipment that
is produced locally, sales tax exemption will be given. |
|
These incentives are applicable for applications received from 28th October 2000
until 31st December 2002 on condition that the project be implemented within 1 year
of approval.
| b. |
For companies which incur capital
expenditure for conserving their energy consumption :- |
|
| i. |
Accelerated capital allowance that
allows the expenditure incurred on related equipment to be fully claimed within a
period of 3 years; and |
| ii. |
Import duty and sales tax exemption
on equipment not produced locally. For equipment that is produced locally, sales
tax exemption will be given. |
|
The incentive in item b (i) is to be effective from year of assessment 2001 while
item b (ii) takes effect from 28th October 2000.
31. Additional Incentive to Encourage Waste Recycling Activity
Currently, Pioneer Status or Investment Tax Allowance is granted to companies undertaking
waste recycling activities which are of high value added using high technology including
:-
| a. |
recycling of agricultural waste or
agricultural by-products; |
| b. |
recycling of chemicals; and |
| c. |
recycling of reconstituted wood-based
panel board or products. |
To promote the orderly development of the waste recycling industry, it is proposed
that companies undertaking waste recycling activities be given the following incentives
:-
| a. |
Accelerated capital allowance on
expenditure incurred on waste recycling machinery and equipment, to be fully claimed
within a period of 3 years; and |
| b. |
Import duty and sales tax exemption
on machinery and equipment not produced locally and sales tax exemption if they are
produced locally. |
Incentive (a) is effective from year of assessment 2001 while incentive (b) takes
effect from 28th October 2000.
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