DAP objects to any proposed implementation of a capital gains tax, including gains on shares, by the Federal government to help rescue the government to replenish its revenues. This was announced by Deputy Finance Minister II Yamani Hafez Musa in Parliament on 22 September that the government was studying the capital gains tax proposal.
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 government must realise that the country is facing a severe national crisis of the COVID-19 pandemic and the economic recession. During this critical juncture, the government should put utmost priority in rescuing the people with financial aid and not the other way round of wanting the people to rescue the government’s depleting revenues. Offering financial aid to save the lives and livelihoods of the people is the duty of the government and not impoverish the rakyat further by squeezing them with additional taxes.
The Federal government must put utmost priority in rescuing the people with financial aid to save lives and livelihoods by cost cutting and stop wasteful projects instead of rescuing themselves by introducing a capital gains tax that imposes additional financial burdens on the rakyat just to replenish the Government’s depleting revenues.