KOTA KINABALU: The Federal Government has been urged to implement an auto-moratorium on loans and tax relief to ensure the people’s livelihood and SMEs survive during the lockdown.
Warisan vice-president Datuk Junz Wong said on Wednesday (June 2), it is the duty of the government to play a proactive role in protecting the most under pressure groups.
“A lot of the industry players told me the banks’ SMS centres are sending SMS after SMS to the borrowers for recovery of the loans. Failing to do so, the banks will repossess the vehicles or properties.”
“This is putting great pressure on industry players who are very much struggling,” he said, adding that such borrowers could face great psychological pressure.
He said that the government’s argument that they have no powers over the banks was not right, as they have previously offered a moratorium in the last lockdown.
Wong added that tax reliefs should also be implemented, as it will encourage spending which in turn moves the economy.
“The government should also consider waiving or deferring all income tax payable for the year 2020 and 2021 financial year, until we are fully recovered from the pandemic,” he said the middle-income group under M40 would have more disposable income to spend and help the local economy.