Not the right time to impose CGT on share disposals
KUALA LUMPUR: The government does not consider it suitable to impose the capital gains tax (CGT) on the disposal of shares of listed companies at this time, says Deputy Finance Minister Lim Hui Ying.

“The approach is taken to ensure that the local stock exchange can continue to be competitive,” she said when winding up the debate on the Income Tax Bill (Amendment) 2024 in the Dewan Negara.

The Dewan Negara yesterday passed two bills involving tax, namely the Income Tax Bill (Amendment) 2024 and the Labuan Business Activity Tax Bill (Amendment) 2024.

Lim said the Income Tax Bill (Amendment) 2024 aims to amend the Income Tax Act 1967 (Act 53), comprising nine clauses to enhance the tax policy and administration.

The proposed enhancements include the implementation of CGT, the implementation of e-Invoice, and tax administration amendments.

She said the CGT is implemented to broaden the tax base, aligned with international best practices.

“Additionally, the implementation of e-Invoice is to improve the efficiency of tax administration in dealing with the challenges of the shadow economy as well as curbing the continuous leakage of national tax revenue,” she said.

Meanwhile, she said the Labuan Business Activity Tax (Amendment) Bill 2024 aims to implement amendments related to the implementation of the e-Invoice such as amendments to the Income Tax Act 1967.

This bill contains two clauses that amend the Labuan Business Activity Tax Act 1990, with the amendments deemed to have come into force on Jan 1, 2024. — Bernama
Taxation,CapitalGainsTax,TaxPolicy,EInvoice,TaxAdministration,ShadowEconomy,TaxRevenue,InternationalTax,Labuan
The government does not consider it suitable to impose the capital gains tax (CGT) on the disposal of shares of listed companies at this time, says Deputy Finance Minister Lim Hui Ying.