2024 Budget: Govt proposes for investment tax allowance of 70pct or 100pct
13 Oct 2023
The government plans to provide an investment tax allowance on a tiered basis of 70 per cent or 100 per cent.
Prime Minister Datuk Seri Anwar Ibrahim said the results-based incentive approach is a new dimension that uses a tiered system in giving incentives.
“It will stimulate companies to generate economy through investment in high-growth and high-value fields and further create new economic clusters, expand domestic networks and balance economic and environmental sustainability,” he said when tabling the 2024 Budget at the Dewan Rakyat today (October 13).
Anwar, who is also the finance minister, said with this, companies will enjoy incentives equivalent to the commitments implemented.
He added that the government will give priority to future investments focused on high-growth and high-value areas to overcome the structural issues that plague the economic system, including the prematurely shrinking industrial sector.
“In order to support the high-value ecosystem, the government proposes that the Pengerang Integrated Petroleum Complex in Johor be made a hub for the development of the chemical and petrochemical sectors by providing a tax incentive package in the form of special tax rates or investment allowances,” said Anwar.