PETALING JAYA: DAP has said that it will strongly oppose any move by the government to introduce a capital gains tax, which includes inheritance tax, in its bid to raise revenue.
DAP secretary-general Lim Guan Eng said such taxes would make Malaysia less competitive in the global economy and impose a burden on those already suffering from the effects of the Covid-19 pandemic.
“This proposal on capital gains tax and inheritance tax was mooted by PH when I was the finance minister.
“But I rejected them as it will make Malaysia less competitive, especially as we have one of the highest corporate tax rates among the 60 biggest economies of the world,” the Bagan MP said in a press statement.
Lim urged the government to instead prioritise helping Malaysians by giving out more financial aid for them to ride out the economic recession.
“At this critical juncture, the government should put utmost priority on rescuing the people with financial aid.
“It should not be the other way around of wanting the people to rescue the government and help with its depleting revenue.
“Do not impoverish the rakyat further by squeezing them with additional taxes”, he added.
Previously, Putrajaya had said it was studying the idea of introducing capital gains tax and a one-off higher tax rate on firms that have performed well during the pandemic.
Deputy finance minister Yamani Hafez Musa said in Parliament on Sept 22 that despite taking note of the tax suggestions made by several MPs, the government still needs to get the views of stakeholders on the impact of this taxation scheme, so that it does not affect Malaysia’s economic position and competitiveness, especially in attracting foreign direct investment.