Tax cut for small enterprises helps remove ‘key barrier’ to growth

Prime Minister Anwar Ibrahim said the tax cut was proposed in response to concerns from SME entrepreneurs facing rising operating costs.PETALING JAYA: The tax reductions for micro, small, medium enterprises (MSMEs) address rising costs, which remain a key barrier to growth, says one of the world's largest professional accounting bodies.

“Tax relief, together with expanded financing support, should improve cash flow and strengthen the ability of MSMEs to invest and expand their business,” CPA Australia’s tax committee member Tai Lai Kok said in a statement.

Earlier today, Prime Minister Anwar Ibrahim said the government would reduce income tax rates for MSMEs by 1% next year, when tabling the 2027 budget.