MIBA lauds move to reinstate stamp duty cap for share transactions

MIBA lauds move to reinstate stamp duty cap for share transactions
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KUALA LUMPUR (Dec 31): The Malaysian Investment Banking Association (MIBA) has lauded the Ministry of Finance’s (MOF) move to reinstate the stamp duty cap on contract notes for the trading of listed shares on Bursa Malaysia.

In a statement, MIBA said the decision recognises the need to boost government revenue, while balancing and ensuring that the local stock market remains competitive and vibrant.

“MIBA would like to thank the MOF for this moderated approach, taking into consideration the industry’s feedback over the plan to remove the stamp duty cap and commends its agility and responsiveness in addressing the need to balance tax collection and attractiveness of our stock market,” the association said.

“MIBA will continue to support the government’s effort towards ensuring the resilience and robustness of the Malaysian capital markets and economy,” it added.

The MOF had on Thursday (Dec 30) announced the reinstatement of the cap at a higher limit of RM1,000 starting Jan 1, 2022 from RM200 previously, with a higher rate of 0.15% versus 0.1%.

The ministry had initially planned to keep the higher rate of 0.15% and to scrap the stamp duty cap altogether, but many quarters expressed concern that the proposal could adversely affect market sentiment due to higher trading costs.

S Kanagaraju