Listed company shares not taxed to ensure capital market growth, says Anwar

 

PKR MP Wong Chen had proposed that CGT be imposed on the shares of listed companies rather than unlisted entities.

PETALING JAYA: The government did not impose capital gains tax (CGT) on listed company shares to ensure capital market growth and investor confidence, said Prime Minister Anwar Ibrahim.

In a written reply, Anwar, who is also the finance minister, said the government believed that the initial step in implementing CGT should focus on the disposal of unlisted shares in local companies.

“This step is in line with the government’s direction to simplify and improve the tax administration, as well as to diversify sources of national income.”

Anwar was replying to Radzi Jidin (PN-Putrajaya) who asked whether the government had conducted a detailed study on the implications of implementing CGT on unlisted shares.

He said the finance ministry had conducted a study and engaged with stakeholders to gather feedback and views on the implementation of CGT since February this year.

When tabling the 2024 budget, the prime minister had said that beginning March 1, 2024, the government would impose CGT of 10% on the disposal of unlisted shares by local companies, calculated based on net profit.

PKR MP Wong Chen had proposed that CGT be imposed on the shares of listed companies rather than unlisted entities.

Wong had said that listed company shares were much easier to tax because of the availability of proper records revealing their buying and selling prices. Hence, the computation of tax payable on gains would not be disputable. - FMT