The National Association of Human Resources (Pusma) wants the government to exempt Sales and Service Tax (SST) for the recruitment of local workers.
Pusma president Zarina Ismail said this is to encourage more employers to hire local workers instead of foreign workers.
"It has been reported in the recent Dewan Rakyat sitting that there are 500,000 unemployed graduates in the country and this incentive or savings in taxation will allow employers to provide better housing facilities to local migrant workers.
"As it is, under the law, foreign migrant workers enjoy free housing but local migrant workers have to pay for their own housing," she said in a statement here today.
She said besides recruitment of local workers, recruitment of domestic workers to enable educated housewives to work and contribute to the economic, should also be exempted from SST.
"We urge the government and Finance Ministry to reconsider these exemptions to help the unemployed local workers and career housewives," she added.