CIDB hopes govt provide technology incentives in Budget 2023
30 Sep 2022 11:52am
Image for illustrative purposes only – 123RF
Therefore, in Budget 2023, to be tabled on Oct 7, construction industry players are hoping that the government would introduce special incentives for the use of high-technology as well as green and sustainable construction practices.
Construction Industry Development Board (CIDB) chief executive Datuk Ahmad Asri Abdul Hamid told Bernama that among the incentives expected from Budget 2023 are tax incentives for IR4.0 readiness.
He said CIBD hopes that the budget will announce tax incentives through double deductions for investment in upgrading business infrastructure to enable hybrid work arrangements and exempting sales and service tax (SST) for the purchase of software related to architecture.
CIDB also proposes that the government through Budget 2023, provide subsidies and incentives for construction machinery equipment.
"This is to encourage industry players to use modern technology in construction. The use of machinery also reduces dependence on unskilled foreign labour,” he said.
He also said that Budget 2023 should provide incentives to train professionals in the use and development of the latest technology.
In terms of sustainable/green construction, Ahmad Asri hopes that a double tax deduction will be granted on additional green costs incurred in the construction of buildings certified as green buildings and the cost of obtaining consultations related to green buildings.
He also expects the granting of an income tax allowance for costs incurred for re-certification, as well as a double tax reduction for a period of 10 years by green lease tenants, and a 10-year tax exemption for green lease rent received by land owners.
Ahmad Asri said it is also hoped that the government, through Budget 2023, expand the list of assets eligible for Green Investment Tax Allowance (GITA) under myHIJAU, in addition to providing stamp duty exemptions to buyers, owners and developers of green buildings.
Meanwhile, he said the government should provide grants/subsidy schemes for existing buildings to make them green, as well as reduce development charges and give a higher plot ratio for Gold and Platinum green building certificate holders.
He also said that the government should implement a double tax cut for developers who have provided centralised labour quarters (CLQ) for workers who have incurred high costs to comply with the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446). - BERNAMA
