PETALING JAYA: The government has to think twice before implementing a capital gains tax (CGT), says Datuk Dr Seri Wee Ka Siong.
"I understand that the CGT is starting because the government wants to increase collections through taxes but to me when you bring in CGT, it would also possibly lead to the implementation of an inheritance tax.
"This is dangerous because many do not want this," the MCA president said in a video posted on his Facebook page Thursday (Oct 5).
Dr Wee added that SMEs and micro-businesses will be hit the hardest by the CGT and that they felt the implementation was unfair towards them.
"The Prime Minister had announced that for Budget 2023, the CGT will be enforced to 'Sdn Bhd' companies in Malaysia but not for companies listed on Bursa (Malaysia).
"I understand that if we do so for listed companies, for sure the Bursa (Malaysia) market will collapse and lead to unsavoury investment conditions.
"We want the economy to be vibrant and lively, and I also agree that they should not be charged the tax, but why is it reasonable to impose it on 'Sdn Bhd' companies?
"I feel this has made people feel that they are being punished," the Ayer Hitam MP said.
He added that he was worried over the implications of the CGT on the local startup scene, pointing out that startups in Singapore do not need to pay CGT.
"If we compare to Singapore, many companies are not hit with CGT and they have dozens of 'unicorns' (companies) worth tens of billions. Imagine if we do have CGT, they (companies) will run to other countries.
"And going back to a fairer and more complete tax system, the answer is just three letters. We all can guess what that is.
"In the past, we were insulted and scolded but let us forget these old stories and move on for the country," Dr Wee said.
