Govt proposes to enhance ACA for automation to meet IR4.0 needs
08 Oct 2022
The government, through Budget 2023, has proposed that the Accelerated Capital Allowance for automation equipment be expanded to include the adaptation of Industry 4.0 (IR4.0) elements.
The Ministry of Finance (MoF), through the appendix of the Budget 2023 speech today, also proposed that the scope of this tax incentive covers the agricultural sector and that the capital expenditure limit for categories 1, 2 and agriculture be adjusted and increased to RM10 million.
The MoF also proposed that the tax incentive for companies producing pharmaceutical products that will end at the end of this year be extended to Dec 31, 2025.
For the existing tax incentives and bona fide status of the shipbuilding and repair (SBSR) industry, the MoF proposes that they be extended for five years to Dec 31, 2027.
In the aerospace sector, the ministry proposes that the investment tax exemptions and allowances given to new and existing companies be extended for another year until Dec 31, 2025.