Bank Islam Malaysia Seeks Tax Incentives Via Malaysia’s 2022 Budget

Mohd Muazzam Mohamed, Chief Executive Officer at Bank Islam Malaysia (Bank Islam), speaking of his Budget 2022 wishlist, said that the Government of Malaysia should consider tax incentives to all financial institutions that engage in microfinancing for micro-entrepreneurs.

Why it Matters?

Mohamed elaborated that microfinancing programmes are mostly granted not for profit, and, in some cases, the operation cost is more than the revenue brought in from them. Stamp duty exemptions for financing contracts and tax exemptions on revenue earned by investors when participating in collaborative products among banks and alternative financing providers, were suggested as incentives. It was further proposed that the government consider allocating non-deposit-base...