PETALING JAYA: The government is urged to reconsider the implementation of a capital gains tax (CGT) by Datuk Dr Seri Wee Ka Siong. Dr Wee, the president of the MCA, expressed concerns about the potential consequences of the CGT, stating that it could potentially lead to the introduction of an inheritance tax. He highlighted that many are opposed to the implementation of an inheritance tax, making it a dangerous move.
In addition, Dr Wee pointed out that small and medium enterprises (SMEs) and micro-businesses will be the most affected by the CGT, perceiving it as unfair towards them. He noted that while the Prime Minister announced that the CGT will be applicable to “Sdn Bhd” companies in Malaysia, it will not apply to companies listed on Bursa Malaysia. Dr Wee acknowledged that implementing CGT for listed companies would adversely impact the Bursa Malaysia market and create unfavorable investment conditions.
Dr Wee questioned the rationale behind imposing CGT on “Sdn Bhd” companies, highlighting that it has created a perception of being punitive. He also expressed concerns about the implications of CGT on the local startup scene, citing the example of Singapore where startups are not required to pay CGT. He warned that if CGT is implemented in Malaysia, companies may choose to relocate to other countries, potentially impacting the economy.
Dr Wee suggested the need for a fairer and more comprehensive tax system, hinting at the possibility of a three-letter solution. He emphasized the importance of leaving past disputes behind and focusing on the betterment of the country.
Credit: The Star : News Feed
