Budget 2017 reactions: Pikom welcomes higher broadband speeds, tax-relief

• Swift implementation needed to increase broadband speed
• Lifestyle tax relief absolutely spot on

 

THE National ICT Association of Malaysia or Pikom welcomes the many provisions Budget 2017 pertaining to the ICT sector.

According to Pikom chairman Chin Chee Seong, “the announcement of higher broadband speeds at existing prices and plans to reduce prices at double the speeds is long overdue.

“This is the right step but the government’s decision to not make ICT goods and services GST zero rated is a missed opportunity to really benefit almost all Malaysians.”

Pikom feels that while allocations of RM1 billion have been made to ensure that broadband speed hits 20 megabytes per second nationwide, implementation must be swift.

The association also welcomes the increase in the facility for public servants to RM5,000 for smartphone purchases once every three years.

The provision of RM2,500 lifestyle tax relief for various items including smartphones and tablets and broadband purchase is spot on.

Pikom has been calling for the current relief to be extended to include smartphones and available at a closer interval.

“This is a welcome move but the amount should be higher considering the typical Malaysian family, especially for urban families. It is a good move all the same and will certainly help the middle income of M40 group,” said Chin.

The focus on ecommerce and startups also bodes well for the industry will serve as a catalyst for further growth.

Pikom will continue to emphasise the need for ICT goods and services to be zero rated under GST as a means to help the rakyat.

Today, these are necessities that everyone uses and providing some form of subsidy or relief would have gone a long way in helping the man on the street.
 
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