Wrapla Technologies founder Dinesh Karunamuti said he was hoping the government would not announce any new tax on online businesses and SMEs as it would potentially hamper their growth.
“In my opinion, I feel such a move would be unfair as most of the online businesses, SMEs or start-ups have limited funding.”
Wrapla is a new SME that offers motorists an opportunity to earn up to RM 878 per month by having their cars wrapped in advertising stickers.
Dinesh said if a new tax was slapped on SMEs and online businesses, they would have no choice but to adjust the amount of money they could offer for Wrapla participants as the taxes would see their costs going up.
In May, it was reported that the finance ministry was looking into the taxation, with Treasury Secretary-General Mohd Irwan Serigar Abdullah saying the ministry had requested the Inland Revenue Board to conduct a thorough evaluation of the matter.
However, Youth and Sports Minister Khairy Jamaluddin subsequently voiced concern that such a move could burden young entrepreneurs and hamper the growth of online businesses.
Suthenesh Sugumaran, Director of Bemalas, an online concierge company, is hoping to see measures which will help more aspiring entrepreneurs get into business.
“What we need now is a comprehensive training programme for anyone who wants to venture into business.”
He said without the necessary direction and guidance, some entrepreneurs, especially those with little experience, risk jumping into the deep end without knowing the risks and how to stay afloat.
Thus, he said, a comprehensive training programme would help guide entrepreneurs develop business plans and strategies to improve their chance of success.
Suthenesh also hoped the government would provide credit facilities for early stage businesses and start-ups as at the present, banks required companies to possess two years’ of financial records.
He said this may be a real stumbling block for younger entrepreneurs and added that more flexible credit facilities would be a boon for many such entrepreneurs.
“Lastly, we hope that the Budget will see the introduction of initiatives that could teach local entrepreneurs to expand regionally.”
He said this included trade deals which helped Malaysian companies set up shop abroad at minimal cost.