KUALA LUMPUR: The Dewan Rakyat today passed the Finance Bill 2021 with a majority voice vote.
Deputy Finance Minister I Datuk Mohd Shahar Abdullah when winding up the debate on the bill said a study on the withdrawal of tax exemption on foreign-sourced income had been made since two years ago.
He said it involved engagements of the ministry with related parties including preparation of concept paper from the Inland Revenue Board which received comprehensive views from various stakeholders at present.
“The Ministry of Finance (MoF) also needs to take into account the involvement and commitment at the international level such as the Organisation for Economic Co-operation and Development (OECD) and the European Union in setting the current taxation policies.
“The MoF remains open to receive all views including establishing a task force between the MoF, tax collection agencies and taxation experts representing various industries to discuss the mechanism to ensure the implementation will be smooth in January 2022.
“The Mof is committed to making sure the amendments to the Act will not have a negative impact on the people in general through a more transparent implementation plan whereby this additional income could be channelled to the country’s recovery programme,” he said.
Mohd Shahar said the bill has 67 sections divided into nine chapters.
The bill among others stated that tax exemption of up to RM1,000 is given for individuals who take Covid-19 screening tests including for personal, spouse or children.
It is contained under the amendment of the Income Tax Act 1967 and the amendment also included the provision on expenditure for mental health check-ups or consultation done by an individual for personal, spouse or children.
On Nov 9, 2021, Mohd Shahar when tabling the bill for the first reading announced that it involved amendments to eight acts to implement Budget 2022 measures.
It involves the Income Tax Act 1967, Real Property Gains Tax 1976, Stamp Act 1949, Petroleum (Income Tax) Act 1967, Labuan Business Activity Tax Act 1990, Promotion of Investment Act 1986, Finance Act 2012, and Finance Act 2018. — Bernama
