KUALA LUMPUR, Oct 2 ― DAP secretary-general Lim Guan Eng today said his party is opposed to the government’s capital gains tax proposal to help Malaysia replenish much needed revenue.
The former finance minister said the capital gains tax would include inheritance tax and would make the country less competitive, which is why he had rejected it when it was first proposed back when Pakatan Harapan was in power.
“DAP will oppose the government imposing a capital gains tax to increase its revenue. Such a capital gains tax would also cover inheritance tax.
“This proposal of capital gains tax and inheritance tax were mooted in the PH government when I was Finance Minister but was rejected by me as it will make Malaysia less competitive, with Malaysia recording one of the highest corporate tax rates amongst the 60 biggest economies of the world,” the Bagan MP said in a statement.
Instead, he suggested the government prioritise giving financial aid to the public to cushion the repercussions of the Covid-19 pandemic.
Lim’s comments follows Deputy Finance Minister II Yamani Hafez Musa September 22 announcement that the government is looking to introduce capital gains tax.
The Sipitang said the capital gains tax or imposing a one-off higher tax on companies that scored high profits during the pandemic would replenish the Treasury that had been seeing an outflow of funds to support those that lost jobs and businesses during the pandemic.