By DayakDaily Team
KUCHING, Dec 4: The tax deduction incentive offers no benefit to hawkers and micro traders with gross revenue exceeding RM150,000 but less than RM500,000 annually, as their profits often fall below the taxable income threshold, said Stampin MP Chong Chieng Jen.
During his debate on Budget 2025, Chong voiced concerns over the Malaysia government’s plan to implement the e-invoicing system for businesses within this revenue range starting July 1, 2025, arguing that the RM150,000 threshold is too low.
He emphasised that hawkers and small traders, who often lack IT infrastructure and have limited resources, will face significant challenges.
“This policy places an undue burden on small traders.
“Many hawkers and traders, after deducting business costs, have a net monthly income or profit of less than RM5,000. They are still categorised as part of the B40 or lower income group. With the implementation of this (e-invoice) policy, many of them will be forced to bear additional expenses for acquiring the necessary equipment and software,” he told the august House today.
Noting that the government would provide tax deductions for expenses incurred by small and medium enterprises (SMEs) in implementing the e-invoice system, he dismissed the tax deduction incentive as ineffective for this group.
“The tax deduction incentive is meaningless to them because their profits are too low to pay income tax in the first place,” he added.
Chong questioned the rationale behind forcing hawkers and micro traders, who are unlikely to be taxable, to bear additional costs for implementing the e-invoicing system.
He pointed out that even under the previous GST regime, businesses with gross revenue below RM500,000 were exempted from compliance, sparing them such costs.
“It is deeply disappointing that the government refuses to increase the threshold to RM500,000. Instead, they are shifting the burden to small traders who are already struggling,” he said.
Chong urged the government to be more sensitive to the struggles of small traders and to raise the e-invoice threshold to RM500,000 to prevent unnecessary financial strain on this vulnerable group. — DayakDaily
