Govt mulls capital gains tax on shares, one-off higher tax rate for businesses with windfall profits

TheEdge Wed, Sep 22, 2021 05:34pm - 2 years View Original


KUALA LUMPUR (Sept 22): The government is contemplating and studying the implementation of a one-off higher tax rate to be imposed upon companies that have generated extraordinary profits during the Covid-19 pandemic.

Deputy Finance Minister II Yamani Hafez Musa, who was speaking in Parliament today, added that Putrajaya is also studying the implementation of a capital gains tax, which was proposed by several Members of Parliament (MPs) during the latest parliamentary sitting as part of efforts to replenish government funds spent on combating the Covid-19 pandemic.

“The government is looking at a few ways in which it can increase its revenue, including implementing the taxing of capital gains on shares and also imposing a one-off higher tax rate on companies that obtain extraordinary profits during the pandemic,” he said during his winding-up speech on the King's address today.

He said that the extra revenue accrued by the taxes would be chanelled towards recovery programmes and activities for selected target groups.

According to Yamani Hafez, the government will obtain the views of stakeholders on the windfall tax or levy on extraordinary profits made by businesses first.

“The government needs to take into account the views and feedback of affected stakeholders to ascertain the effects of imposing these taxes, so that it does not affect Malaysia’s economic standing and competitiveness, specifically in attracting foreign investments,” he said.

More to come

For more Parliament stories, click here.

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Comments

pali cd
Like · Reply
Its will b death sentence to investors n bursa..BRAVO..!!
Joe Ng
Like · Reply
Populist policy. Does harm only to the economy. #kerajaangagal2.0
Joe Ng
Ppl take risk when investing and this is why there is no need for capital gains tax as this will further discourage ppl from investing
Like · 2 years · translate
Jonathan Ho Hao Guang
2 Like · Reply
Maybe think of reducing unnecessary government employees first?
Mr Ong Ti Chiang
1 Like · Reply
should cut down the numbers of deadwood ministry b4 thinking of imposing new taxes

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