Will SME benefit from Budget 2009 ?
All SME assets in the form of plant and machinery acquired in the years of assessment 2009 and 2010 be given Accelerated Capital Allowance to be claimed within one year. In addition, SMEs are allowed to claim full Capital Allowance on all small value assets within one year
Sounds good. But we don’t know how government going to enforce the rules. This is what I can think of
1. Government red tape – Many servant don’t know what machinery are qualify for such incentive.
2. Many SME don’t know what to do with it, because the budget didn’t say what machinery are eligible.
3. Unscrupulous SME that know the connection import cheap inferior junk and claims as expensive machinery to take advantage.
And nobody know what is the limit of the incentive. Because large corporate may register a SME and do a nitty-witty transfer to take the advantage.
Good incentive, but let check out the detail and see whether it is implement with brain.