KUALA LUMPUR: The capital market and its investors stand to benefit from the capital gains tax (CGT) exemption on unit trusts, says deputy finance minister Lim Hui Ying.
Lim said the exemption would decrease the projected annual national revenue, estimated at RM800 million by her ministry in November 2023.
“However, the government believes that it will further boost the performance of the capital market while providing full benefits to over 90% of individuals investing in the industry.
“The exemption aims to maintain unit trusts as an attractive investment option for investors.
“It also benefits individual investors by providing higher returns, particularly for those in the pre-retirement and early retirement stages,” she told the Dewan Rakyat today.
Lim was responding to Ahmad Fadhli Shaari (PN-Pasir Mas) on whether the CGT exemption on unit trusts would affect the national revenue.
The CGT was first announced by Prime Minister Anwar Ibrahim in the revised 2023 budget in February last year.
In tabling the 2024 budget, Anwar said the government would impose CGT for the disposal of unlisted shares by local companies based on net profit at a rate of 10% from March 1, 2024.
Earlier this year, the government agreed to waive the CGT and taxes on foreign-sourced income (FSI) on unit trusts.
The exemption on FSI is effective from Jan 1, 2024 to Dec 31, 2026, while the exemption on CGT is effective from Jan 1, 2024 to Dec 31, 2028. - FMT
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