KUALA LUMPUR, Nov 4 (Sin Chew Daily) – The government is expected to extend the people-friendly measures and even provide new assistances for people affected by the economic downturn in the upcoming 2021 Budget.

Datuk Chua Tia Guan, Head of Tax & Financial Consulting, Asia Business Centre Malaysia, told Sin Chew Daily the Perikatan Nasional government will not introduce new taxes, nor re-initiate the much talked about GST, in view of the drastically reduced incomes of Malaysians as a consequence of the coronavirus pandemic.

He believes the government will continue with the prihatin assistance program or even expand the assistance for low-income households.

Chua said the government may also try to plug the tax loophole from shadow economy, which makes up about 21% of the country's GDP, equivalent to RM300 billion. This translates into RM6 billion in tax revenue loss annually.

"Among the measures the government may introduce include the Tax Identification Number (TIN) for all business or individual income earners aged 18 and above with the objective of expanding the tax collection base.

"Meanwhile, the government may also make it mandatory for internet businesses and micro businesses to register with Company Registration Malaysia."

However, he said not all internet or micro businesses are subject to tax. They do not need to pay tax if they do not meet the minimum income threshold.