Top Glove urges corporate tax reduction
KUALA LUMPUR: Rubber glove manufacturer Top Glove Corp Bhd has urged the government to reduce corporate tax by two per cent annually to 20 per cent.
Its chairman Tan Sri Lim Wee Chai said reducing the corporate tax to 20 per cent from 25 per cent currently would attract more investors into the country.
He also said bringing down the corporate tax would also reduce operational costs.
"It is, therefore, crucial to lower corporate tax. Malaysia imposes a higher tax compared with countries like Thailand, Singapore and Hong Kong," he said on the sidelines of the Federation of Malaysian Manufacturers Innovation Conference 2013 yesterday.
Taking Thailand as an example, Lim said the country had reduced its tax rate from 30 to 20 per cent, and by doing so, the relationship with foreign investors has improved.
He also called on the government to be wise in making investments to drive national income and reduce expenditure.
Meanwhile, Top Glove plans to capture a global market share of 30 per cent from its current 25 per cent.
"We are aiming to expand production of nitrile and natural rubber gloves to achieve this target," Lim added.
Top Glove expects to achieve sales of RM3 billion by year-end. It has registered RM2.3 billion in sales revenue to date. Bernama