The government is looking to potentially introduce the Capital Gains Tax (CGT) on the stock market, on a temporary basis, to provide more revenue to the country.
Based on a report by Sinar Harian, Pontian Member of Parliament, Datuk Seri Ahmad Maslan, shared that the tax can help the government in enduring the difficulties of the pandemic.
“This CGT is a good proposal that we may be able to impose for a while,”
“Yang Berhormat Pekan (Datuk Seri Najib Tun Razak) had previously also suggested that temporary taxes be imposed when times get difficult,” he said.
He had shared this in response to Datuk Seri Dr Ahmad Zahid Hamidi (BN-Bagan Datuk), on whether he agrees with the suggestion that CGT should be introduced, during the debate session on the extraordinary profit levy bill.
He went on to explain that CGT will have a good and bad impact on the stock market or the capital market.
“However, when times are difficult, it gives benefits, which is to give more income to the government.”
This comes after Ahmad Zahid had asked that the extraordinary profits bill not only be imposed on commodities, that the government should also impose taxes onto investors and companies that make extraordinary profits, including those that heftily earn from stock markets.
“When the stock market reaches the level of ‘bull run’ (an extraordinary jump) to 1,200 points, then the increase in share prices is extraordinary too. But (so far) no tax is levied on this capital gain,” Ahmad Zahid said.
Hence, if you’ve invested in cryptocurrencies and are making quite the income from it, be prepared to potentially be taxed.
What do you think about this? Let us know in the comment section.
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