Malaysia will not implement the Capital Gains Tax (CGT) as it will stifle domestic direct investment (DDI) and foreign direct investment (FDI), Deputy Finance Minister Datuk Ahmad Maslan said.
He said the CGT would also affect full distribution of other capital gains as foreign and local investors would not derive profits from their business commensurate with their efforts.
"They will not be able to use their profits to expand their business and investments in the country.
"In our view, the implementation of the CGT will hinder economic growth due to declining DDI and FDI and will not attract foreign investment, apart from raising the cost of investment," he told a briefing on the 2015 Budget here today.
Ahmad said Malaysia currently imposed the CGT only on capital gains from the sale of real estate known as the Real Property Gains Tax (RPGT) to avoid speculation and manipulation to earn abnormal profits.
He was commenting on a proposal by the Opposition that the GST should be replaced with the CGT, a tax on capital gains; the profit realised on the sale of a non-inventory asset purchased at a cost amount that was lower than the amount realised.
He said the opposition had exploited public sentiment over the implementation the GST by not mentioning that with the introduction of the GST in April next year, the Sales and Services Tax (SST) would be abolished.
"What was raised by opposition leader Datuk Seri Anwar Ibrahim during debate in Parliament was an attempt to confuse the people by portraying that the GST will burden the people. On the contrary, the SST is higher as it is a tax-on-tax regime.
"Under the SST, consumers are paying between 15 and 18 per cent on goods and services. With the implementation of the GST, they will only be charged six per cent. The government is implementing the GST to reduce the burden of the people," Ahmad said.
The GST will be levied on RON97 petrol as it is not subsidised and the price depends on the market condition, he said, adding that the consumption of RON97 at present was three per cent.
Speaking to reporters at Parliament lobby later, Ahmad said the CGT would also give a negative impact on the economic transformation agenda and burden investors and traders who had to pay a variety of taxes, including corporate tax, individual income tax and the GST.
"If the government were to implement the CGT, investors will shy away from Malaysia or withdraw their investments as their cost of doing business will go up because they will have to pay various taxes.
"The opposition is only good at government bashing, rather than understanding the rationale behind having a better tax system," he said.
On the inheritance tax (IT), he said it would not be reintroduced as it would cause an imbalance and burden high-income tax payers who would have to pay five taxes, including corporate tax, income tax and the CGT.
"The government had implemented IT before, but the tax collection was not much, ironically, increasing the tax gap to between 20 and 25 per cent," he said.
Bernama
Tue Oct 14 2014
Deputy Finance Minister Datuk Ahmad Maslan
Freedom Flotilla to Gaza: Sekumpulan pakar PBB gesa laluan selamat bagi misi penghantaran bantuan
Sekumpulan pakar dari Pertubuhan Bangsa-Bangsa Bersatu (PBB) menggesa agar laluan selamat bagi misi Break The Siege Freedom Flotilla to Gaza pada Jumaat.
Sabah FC berdepan tunggakan sebulan gaji pemain - Pengarah
Sabah FC kini hanya berdepan tunggakan gaji pemain untuk satu bulan setelah usaha dilakukan secara tuntas untuk menyelesaikan masalah pembayaran tunggakan sejak tahun lepas.
Tumpuan Jumaat - 26 April 2024
Ikuti rangkuman berita utama yang menjadi tumpuan di Astro AWANI.
MYAirline akan terus kekalkan barisan pemegang jawatan, dapatkan pelbagai pelabur
MYAirline Sdn Bhd akan terus mengekalkan barisan pemegang jawatan yang dilantik dan pengurusan utama selain memastikan dokumentasi Sijil Perakuan Pengendali Udaranya (AOC) kekal dalam keadaan terkini.
China sokong Malaysia untuk dapatkan pembangunan yang sesuai dan mainkan peranan dalam arena antarabangsa
China akan memberikan sokongan kepada Perdana Menteri Datuk Seri Anwar Ibrahim untuk mempromosikan prinsip Malaysia MADANI dalam tadbir urus.
Perasuah semakin licik, perlu sokongan semua pihak terutama media - Azam Baki
Rasuah merupakan jenayah yang unik sifatnya pada masa kini dan Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) memerlukan sokongan daripada semua pihak khususnya media untuk membanterasnya.
KJ tak terfikir untuk kembali ke FAM
Khairy berkata terdapat calon-calon lain yang lebih layak untuk menerajui badan induk itu berbanding beliau.
Dakwa kerajaan ambil tindakan terhadap kritikan, Syed Saddiq diminta tidak hipokrit - Fahmi
Fahmi berkata kerajaan tidak menghalang rakyat untuk mengkritik, khususnya melibatkan dasar yang dilaksanakan kerajaan.
Dua anak Tun M sekali lagi diberi tempoh lanjutan 30 hari bagi isytihar harta
Maklumat harta serta aset Mirzan dan Tan Sri Mokhzani sejak empat dekad lalu perlu dikemukakan dalam tempoh 30 hari kepada SPRM.
AWANI Ringkas: Kes saman fitnah
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
Lebih 14,000 aduan diterima menerusi aplikasi MYJalan setakat ini - Ahmad Maslan
KKR juga telah menyelesaikan 86 peratus daripada 3,766 aduan diterima menerusi aplikasi itu setakat ini.
KKR harap projek naik taraf 3 jalan di Johor dilaksana tahun depan - Ahmad Maslan
Kementerian Kerja Raya (KKR) berharap kerja naik taraf tiga jalan di Johor dapat dilaksanakan tahun hadapan susulan pertambahan kenderaan menggunakan jalan tersebut.
Jajaran 'redline' Sarawak dinaik taraf - Alexander
Jajaran 'redline' yang melibatkan jalan persekutuan dan jalan negeri di Sarawak akan direka bentuk semula dan dinaik taraf agar mengikut standard Projek Lebuh Raya Pan Borneo.
Kontraktor perlu ambil peluang raih projek pembinaan bernilai RM180 bilion tahun ini
Kontraktor harus mengambil peluang untuk memperoleh pelbagai projek pembinaan dalam negara yang bernilai kira-kira RM180 bilion tahun ini, kata Timbalan Menteri Kerja Raya Datuk Seri Ahmad Maslan.
'No free lunch', tiada penambahan hari tol percuma - Ahmad Maslan
Kerajaan tidak berhasrat untuk menambah bilangan hari bagi pemberian tol percuma sempena Aidilfitri tahun ini.
Cadangan hapus tol sukar dilaksanakan - Ahmad Maslan
Cadangan untuk menghapuskan tol dilihat sukar untuk dilaksanakan kerana ia akan memberi implikasi besar terhadap kedudukan kewangan negara, kata Timbalan Menteri Kerja Raya Datuk Seri Ahmad Maslan.
Hanya 16 projek sakit - Ahmad Maslan
Hanya 16 atau 2.14 peratus daripada 746 projek di bawah Kementerian Kerja Raya (KKR) di seluruh negara dikenal pasti sebagai "projek sakit".
Pembinaan LPT3 akan guna model pembiayaan BOT - Ahmad Maslan
Cadangan pembinaan Lebuhraya Pantai Timur 3 (LPT3) dari Kampung Gemuroh, Kuala Terengganu ke Kampung Tunjong di Kota Bharu, Kelantan sejauh 122 kilometer akan menggunakan model pembiayaan Bina, Kendal
ABM berhasrat tawar modul keusahawanan menerusi kerjasama dengan UUM
Ia bagi memastikan pelatih memiliki kemahiran dalam bidang teknikal dan ilmu keusahawanan yang membolehkan mereka menjalankan perniagaan.
'DAP jangan guris hati orang Melayu' - Ahmad Maslan
Pimpinan utama parti dalam Kerajaan Perpaduan diminta lebih berhati-hati ketika mengeluarkan kenyataan kerana dikhuatiri boleh menyinggung perasaan orang Melayu dan Bumiputera.