(October 9): The Pakatan Rakyat today unveiled its own budget which provided an alternative to the controversial Putrajaya's Goods and Services Tax (GST).

Saying that GST is a regressive tax, the coalition is proposing to introduce a Capital Gains Tax for equities (CGT) and Inheritance Tax.

It said under CGT, tax will be imposed on capital gains made on stocks, bonds and other capital transaction involving stocks such as the Employee Share Option Scheme.

Currently, the only such tax similar to this is the Real Property Gains Tax (RPGT) which is limited to properties sold within five years.

It also proposed an inheritance tax involving transfer of assets worth RM5 million and above between family members of the wealthy.

Currently, it said Malaysia does not have any taxes charged on the wealth enjoyed as a result of a transfer of assets among the wealthy.

“If there was an inheritence tax when Lim Goh Tong was alive, the government would have been able to get back some of Lim’s wealth obtained through profits of a gambling license,” said Serdang MP Ong Kian Ming today when unveiling the alternative budget.

Ong said these taxes were preferable to the GST as it is progressive in nature, meaning that the wealthy will bear a higher burden of tax, as a proportion to their income.

"The government often says that GST is good because more than 100 countries (have implemented it), but more than 100 countries also have CGT," Ong said.

Pakatan Rakyat said it reiterated its stands against the implementation of the GST until there is a rise in the people’s disposable income level.

It said that Putrajaya's insistence on implementing the GST on April 1, will very likely face serious challenges.

"If not managed properly, the rakyat, be it the consumer or the business community, will be forced to suffer the heavy economic burden as a consequence," the opposition coalition said.