SKM, LHDN Discussing Tax Exemption Proposal On Expenses Related To Cooperative AGMs

TELUK INTAN, Nov 25 (Bernama) -- The Cooperatives Commission of Malaysia (SKM) is holding discussions with the Inland Revenue Board (LHDN) to specifically consider a proposal for tax exemption on expenses related to annual general meetings (AGMs) for cooperatives, said Entrepreneur and Cooperative Development Minister Datuk Ewon Benedick.

He said the proposal on the tax exemption was initially discussed during the National Cooperative Congress in July.

“…if not the total expense of the annual general meeting, at least a certain ceiling should be exempted from being taxed.

"(However), at the same time, we need to consider the need for revenue generation (tax) for the country. So, I think it would be appropriate to consider setting a certain ceiling; I cannot specify the amount at this moment, but perhaps that could be determined later," he said.

He spoke to reporters after officiating the 50th-anniversary celebration of Ladang Moccis Sdn Bhd, also attended by Koperasi MOCCIS Berhad board of directors chairman Datuk Ahmad Sobri Wan Teh today.

Meanwhile, Ewon said the ministry will hold engagement sessions with all MPs regarding the amendments to the Co-operative Societies Act 1993 before tabling in the Dewan Rakyat.

"I want MPs to contribute to the drafting and preparation of the amendments, in addition to holding engagement sessions with the cooperative movement and various government agencies and departments. I want them to be a significant part of the process," he said.

In October, Ewon was reported to have said that the Co-operative Societies Act 1993 would be amended, involving 96 original provisions, which would be restructured and improved before being tabled in the Dewan Rakyat next year.

Ewon said that the main provisions that will be included in the Act are related to the liberalisation of cooperative business and matters related to governance, including regulating the registration of cooperatives.

-- BERNAMA