Minister at the Prime Minister’s Office and Minister of Finance and Economy II Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah yesterday explained the rationale behind setting the targeted treasury revenue baseline at BND 221.1 million for the coming years.
Speaking during the 21st Legislative Council (LegCo) session yesterday, the minister outlined key policy changes affecting government revenue.
“The revenue baseline of BND221.1 million has been in place since the 2014/2015 financial year. Over the years, the Ministry of Finance and Economy (MoFE) has introduced several corporate tax adjustments, some of which have negatively impacted revenue like for companies with revenue below BND1 million are exempt from corporate tax,” he stated.
As a consequence, the minister revealed that some large companies have deliberately restructured into smaller entities to keep their revenue below the tax threshold, thereby avoiding corporate tax obligations.
“This has had a negative effect on government revenue,” he noted.
To address the issue, the minister emphasised the need to reassess existing policies. “The MoFE takes this matter seriously. We are reviewing tax policies to ensure that all private limited companies (sendirian berhad) fulfil their corporate tax responsibilities,” he said.
On corporate tax compliance, the minister highlighted that many registered private limited companies remain inactive or dormant yet are still listed under the Registry of Companies and Business Names (ROCBN).
“The ministry, through ROCBN, will take necessary action to strike off inactive companies from the registry,” he added.
Addressing questions on financial support for micro, small and medium enterprises (MSMEs), the minister clarified that Bank Usahawan operates independently of the government budget.
“As of December 2024, Bank Usahawan has provided 806 financial loans to MSMEs,” he stated.
He further noted that the bank recently shifted its strategic focus to prioritising micro-businesses and economically vulnerable groups.
“Bank Usahawan collaborates with the Brunei Economic Development Board (BEDB) to provide entrepreneurship training in areas such as basic bookkeeping and financial literacy,” he said.
Additionally, the bank works closely with BEDB and Darussalam Enterprise (DARe) to extend financial support to graduates of DARe’s incubation programmes.
“Bank Usahawan also actively participates in DARe’s MSME-related events, including forums and expos,” the minister added. – James Kon
