ABC urges govt to rethink tax policy

The American Business Council has urged the government to reconsider the 25% Sales Promotion, Advertising, and Publicity (SAP) Expense Disallowance Policy, warning that it will significantly increase marketing costs, particularly for multinationals. The government’s disallowance of 25% of SAP expenses creates a substantial financial burden, especially for multinationals that rely heavily on advertising to sell fast-moving consumer goods (FMCGs). This policy translates to a higher tax liability for foreign companies already struggling with current macroeconomic conditions and fosters an anti-competitive and discriminatory environment targeting foreign investors.