On the 18th of January 2021, the Prime Minister of Malaysia, Yab Tan Sri Dato’ Haji Muhyiddin Bin Haji Mohd Yassin made a special announcement on PERMAI assistant package and below are the highlights:

Stepping up Testing of Employees

• Tax relief for full health screening expenses, which was increased from RM500 to RM1,000 in Budget 2021, now covers COVID-19 screening and detection tests privately.

Strengthening Welfare Programmes

• The Government has announced several incentives in tax deductions for donors who have been assisting in cash and kind those impacted by the pandemic. Such donors are eligible for a tax deduction based on their gross business income or aggregate income.

Extending the Special Tax Relief on the Purchase of Mobile Phones, Computers and Tablets

• Tax exemptions for computers, handphones, and tablets worth below RM2,500 to be extended until 31 December 2021

Extending the sales tax exemption on passenger vehicles

• The sales tax exemption has been extended until 30 June 2021 on passenger vehicles for locally assembled and imported passenger vehicles.

Improving the Wage Subsidy Programme

• Wage Subsidy Programme 3.0 under SOCSO will be enhanced. All employers operating in the MCO states will be eligible to apply, irrespective of sector. For one-month, eligible employers will receive a wage subsidy of RM600 for each of their employees earning less than RM4,000. Besides, the wage subsidy limit for each employer will be increased from 200 to 500 employees. 

Continuing the Prihatin Special Grant

• Government to expand the Prihatin Special Grant Plus assistance to cover 500,000 SMEs in the seven MCO states with a payment of RM1,000 each, while 300,000 SMEs in other states will receive RM500 each.

Providing One-Off Financial Assistance to Taxi and Bus Drivers

• A one-off financial assistance of RM500 to 14,000 tourist guides as well as 118,000 drivers of taxis, school buses, tour buses, rental cars and e-hailing vehicles, with an additional allocation of RM66mil.
• Exemption from excise duty and sales tax for transfer, disposal, and for the private use of taxis, provided the vehicle is owned for seven years, this condition has been reduced to five years, effective from 1 January to 31 December 2021.

Continuing Electricity Bill Discounts

• Special discount of 10% on electricity bills from January to March 2021 to six business sectors nationwide, comprising hotel operators, theme parks, convention centers, shopping malls, local airline offices, and travel and tour agencies.
• Electricity rebates of RM0.02 per kilowatt-hour to all domestic and non-domestic TNB users, which is equivalent to a reduction in electricity bills of up to 9% for six months, from 1 January to 30 June, 2021.

Introducing a Bus and Taxi Hire Purchase Rehabilitation Scheme

• A Bus and Taxi Hire Purchase Rehabilitation Scheme was introduced. A 50% guarantee on financing from hire purchase and leasing companies will be provided for selected buses such as sightseeing buses and taxis. Total guarantee of RM1 bil will be provided.

Extending the Temporary Measures for Reducing the Impact of COVID-19 Act 2020

• Government agrees to extend the effective period of inability to perform contractual obligations to 31 March 2021, under the Temporary Measures for Reducing the Impact of Covid-19 Act 2020, or Act 829.

Rescheduling and Extending the Moratorium Period for MARA Loans and MARA Premises Rental

• Special rental deduction extended to 30 June 2021.

Source from Prime Minister’s Office of Malaysia Official Website (https://www.pmo.gov.my/2021/01/special-announcement-on-the-perlindungan-ekonomi-rakyat-malaysia-permai-assistance-package/) 

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