The M40 group and SMEs will be targeted in the budget of 2024
According to Steven Sim, Budget 2024 will focus on the M40 group and SMEs. Both groups are important because their contribution is to the national economy, according to Deputy Finance Minister II.
The middle class is going to need help and support as many people were affected by the Covid19 virus, Sim said. 20% of M40 has been reduced to B40 because of the Covidu19 virus outbreak.
They are the engine of the economy, the workforce, and they are the ones who will spend in the local economy. Regarding SMEs, they are responsible for approximately 98% of the nation's economy, according to his statement.
According to Sim, the budget for 2024 will focus on two strategies to increase the ceiling and the floor of the economy. According to him, the government is trying to help entrepreneurs restructure their businesses and increase their value.
It is seeking to bring high technology and higher value industries, he said. We do not want businesses to just make a profit, but they must be healthy, powerful and intelligent in the interests of their competitiveness at regional and global level.
If businesses and industrial facilities have a higher production value, they can pay better wages so that workers do not go abroad for their next employer or country. More job opportunities can be created if businesses can provide higher wages.
This would facilitate tax collection and infrastructure development, according to his statement. According to Sim, there will be no introduction of the Goods and Services Tax.
It was not a good time to bring it back, he said, due to the slow economy that is affecting the whole world. The recovery from the pandemic is ongoing, and it is not desired to impose additional burdens on the populace, especially as the costs of raw materials and goods are increasing, according to the statement.
The imposition is expected to place significant burdens on the B40 and M40 demographic groups, particularly affecting single parents and younger households, according to his statement. Some quarters have a reason for wanting the Goods and Services Tax, as they can make claims, but we see them not only from their point of view, but from a broader point of view.
He did not imply that it was bad or otherwise, just that the timing was not right for it, he further explained. Sim pointed out that there was still another way of boosting the country's revenue, in a question on whether the government would consider reintroduction of the Goods and Services Tax but with reduced rates.
All avenues, such as improved fiscal management, taxation, and procurement, have not been fully explored yet, according to his statement. These methods can still be utilized without having to depend on GST for the time being, according to his statement.