MalayMail-Dec 23

Malaysia is prime to join the growing number of countries that have had success taxing stock gains or inheritance wealth as both a revenue source and an effective redistributive mechanism, the World Bank said in its December’s Economic Monitor, contrasting views held by both government and Opposition politicians that the levy would spook the rich and trigger capital flight. The bank said “a comprehensive CGT” or an inheritance tax could “significantly” broaden the government’s revenue base, made more crucial at a time when public finances are under severe pressure from the Covid-19 crisis as the government sought to save livelihood and keep a devastated economy afloat. To this day, most political leaders have been reluctant to tax share profits or dividends, raising only a small amount of revenue from capital taxes. There was also hesitation by past and current administrations to heed suggestions for wealth transfers or inheritance to be taxed, since its abolition of estate duty in 1991. Read more at: https://www.malaymail.com/news/malaysia/2021/12/23/world-bank-says-malaysia-has-plenty-of-scope-to-tax-capital-gains-or-inheri/2030443