Tax rich more to make taxation system more progressive, KJ tells gov't

Former Umno minister Khairy Jamaluddin today suggested that the government impose higher taxes on the rich in order to make Malaysia’s taxation system more progressive.

The Rembau MP said this is because Malaysia is still beset by inequality in terms of income.

“There are ways to make it (Malaysia's taxation system) more progressive.

He said the "income tax threshold for the highest income bracket" should be modified to include those who make "more than RM200,000 and RM500,000 a month", for example.

Malaysia uses a progressive tax system which charges different rates for different income groups. Tax brackets refer to a range of incomes taxed at a pre-determined rate.

Those who earn chargeable income exceeding RM1 million per year comprise the highest bracket, and are charged a tax rate of 28 percent.

“Other tax instruments like capital gains tax and wealth tax need to be studied in more detail as it could lead to capital flight (from Malaysia) and people evading tax.

“Malaysia is still an unequal society and we could use a fiscal tax system that is more fair,” said Khairy, who is also the shadow finance minister for the opposition.

He was speaking when met by reporters at the sidelines of the Malaysian Strategic Financial Outlook Forum, at the Sunway Resort Hotel and Spa in Bandar Sunway, Petaling Jaya. - Mkini