THE Cukai Makmur (prosperity tax) announced in Budget 2022 is not an issue and does not prevent SME Bank from continuing to support the development of entrepreneurs next year.
The bank’s group chief corporate strategy officer Mohammad Hardee Ibrahim said the tax collection would not affect the bank’s revenue.
“It doesn’t hinder us. For us, Cukai Makmur is for profitability on a certain threshold. In our case, we weren’t worried,” he told a press conference after the Southern Region Jom XCESS SME Bank programme in Johor Bahru today.
“In fact, even if we have to pay the tax … as a bank owned by the government, we do pay dividends to the Government as well. So, that is not an issue or constraint for us to continue to support entrepreneurs.”
Also present at the event was Entrepreneur Development and Cooperative Minister Tan Sri Noh Omar.
Mohammad Hardee was asked whether Cukai Makmur collection for the year of assessment 2022 would affect the bank’s revenue as well as its ability to offer more financing in the future.
Under Budget 2022, the Government has proposed a one-off Cukai Makmur on companies that make more than RM100 mil in profit for the year of assessment 2022. The first chargeable income of up to RM100 mil is taxed at 24% while the remaining chargeable income is taxed at 33%.
Since its establishment, SME Bank has approved financing worth RM38 bil to 20,543 entrepreneurs involved in the running of small and medium enterprises (SMEs).
Earlier, in his speech, Mohammad Hardee said the bank has 512 customers with a financing value of RM505.6 mil through two branches under the Southern Region Centre.
“Until September this year, SME Bank’s Southern Regional Centre has approved financing worth RM255.3 mil to more than 115 customers. This achievement has exceeded the approval target of RM200 mil (128%) set by the SME Bank management,” he noted.
Under the Jom XCESS Programme, SME entrepreneurs have the opportunity to obtain various financing facilities and entrepreneur development programmes provided by SME Bank.
Almost 800 entrepreneurs participated in the Jom XCESS programme held recently at three locations with SME Bank recording financing potential of RM139 mil. – Nov 7, 2021
