KUALA LUMPUR, October 2 – DAP General Secretary Lim Guan Eng said today his party opposed the government’s capital gains tax proposal to help Malaysia rebuild income she needs so badly.
The former finance minister said the capital gains tax would include inheritance tax and make the country less competitive, which is why he rejected it when it was first proposed when Pakatan Harapan was in power.
“The DAP will oppose the government to impose a capital gains tax to increase its income. Such a capital gains tax would also cover inheritance tax.
“This capital gains tax and inheritance tax proposal was brought up by the PH government when I was finance minister, but was rejected because it will make Malaysia less competitive, Malaysia has one of the highest corporate tax rates among the 60 largest economies in the world, ”the member for Bagan said in a statement.
Instead, he suggested that the government prioritize financial assistance to the public to cushion the impact of the Covid-19 pandemic.
Lim’s comments follow a September 22 announcement by Deputy Finance Minister II Yamani Hafez Musa that the government is considering introducing a capital gains tax.
The Sipitang said the capital gains tax or the imposition of a higher one-off tax on companies that made high profits during the pandemic would replenish the treasury which had seen an outflow to support those who lost jobs and businesses during the pandemic.