KUALA LUMPUR (Sept 22): The government is contemplating and studying the implementation of a one-off higher tax rate to be imposed on companies that have generated extraordinary profits during the Covid-19 pandemic.
Deputy Finance Minister II Yamani Hafez Musa, who was speaking in Parliament today, added that Putrajaya is also studying the implementation of a capital gains tax, which was proposed by several Members of Parliament (MPs) during the latest parliamentary sitting as part of efforts to replenish government funds spent on combating the Covid-19 pandemic.
“The government is looking at a few ways in which it can increase its revenue, including implementing the taxing of capital gains on shares and also imposing a one-off higher tax rate on companies that have obtained extraordinary profits during the pandemic,” he said during his winding-up speech on the King's address today.
He said that the extra revenue accrued by the taxes would be chanelled towards recovery programmes and activities for selected target groups.
According to Yamani Hafez, the government will obtain the views of stakeholders on the windfall tax or levy on extraordinary profits made by businesses first.
“The government needs to take into account the views and feedback of affected stakeholders to ascertain the effects of imposing these taxes, so that it does not affect Malaysia’s economic standing and competitiveness, specifically in attracting foreign investments,” he said.
Yamani Hafez added that the government is finding a workable solution to implement an interest-free loan moratorium for borrowers and is still in talks with financial institutions as this involves a commercial decision between bank managements.
"The ministry wants a workable solution which would take into account the long-term effects on borrowers, depositors, investors, financial institutions and the economy," he said.
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