No plans yet to implement wealth tax, says finance ministry

 It says contributions from a wealth tax will not be significant if tax exemptions and reliefs are granted, as is the case with other existing taxes.

The finance ministry said the government remains committed to ensuring that its tax policies are based on just and fair principles. (Facebook pic)

KUALA LUMPUR:

The government presently has no plans to implement a 2% wealth tax on wealthy individuals to help finance government expenditure, the finance ministry says.

It said the contribution from a wealth tax would not be significant if tax exemptions and reliefs were granted, as is the case with other existing taxes.

“The implementation of a wealth tax, in whatever form or mechanism, must be carefully examined from various aspects, including Malaysia’s relatively small and limited tax base.

“However, the government remains committed to ensuring that its tax policies are based on just and fair principles as well as being more targeted, so that the tax structure remains progressive and is able to reduce socioeconomic inequality,” the ministry said in a written parliamentary reply.

It said it had adopted a more targeted approach by broadening the tax base to include those with greater financial capacity.

This includes the implementation of the capital gains tax on the disposal of unlisted shares, the dividend tax on dividend income exceeding RM100,000, and the tax imposed on profit distributions exceeding RM100,000 received by partners in a limited liability partnership. - FMT