MTUC calls for withdrawal of all tax concessions on migrant worker levy

KUALA LUMPUR (Sept 27): The Malaysian Trades Union Congress (MTUC), in welcoming the Ministry of Finance's retraction of its earlier stance that the levy for migrant workers be split 20:80 between employers and foreign workers, has also called for the withdrawal of all tax concessions granted on the levy.

MTUC secretary-general J Solomon said the withdrawal of the tax concessions granted on the levy is sought to discourage cheap labour and to protect the integrity of Malaysia.

Doing so also open up job opportunities to local workers at a reasonable living wage, said Solomon.

Meanwhile, the MTUC appreciates the government's decision to revert back to having the employers bear full levy for foreign workers, saying this has brought relief to thousands of migrant workers. The decision also complies with the International Labour Organization (ILO) Convention 97 and Observations of the Committee of Experts on Applications of Conventions and Recommendations (CEACR) in relation to equal treatment, minimum wages and foreign workers' levy at the 2018 International Labour Conference.

"It is to be noted that in the first place, the government allows the extension of retaining the migrant workers for the benefit of employers.

"The necessity of extension does not arise if the employers had the foresight to train and retrain Malaysian workers in the best interest of the nation. In this context, any concession on the levy or tax exemption sought by the employers should not be entertained as it cannot be justified and can only be construed as an attempt to loot from the government's coffer," said Solomon.

MTUC is of the view that employers should have long-term strategic planning especially in developing local workers so that they are not continuously dependent on cheap migrant workers.

"The continuous dependency on migrant workers without any intention to upskill the local workers will be construed as the employers are making Malaysia a breeding ground for cheap labour contrary to the aspirations of Malaysians to make Malaysia a high income nation.

"The government alone cannot achieve this vision when we allow employers to only focus on corporate greed," said Solomon. — theedgemarkets.com

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