KOTA KINABALU: A Parti Warisan leader has joined the growing chorus of voices opposing the inheritance tax, which is believed to be among a host of new taxes the government is expected to introduce in the upcoming federal Budget 2025.
The party's legal adviser, Chin Tek Ming, called the proposal “unfair, " saying that such policies would burden ordinary families facing financial difficulties.
Chin said the government should consider the economic situations of such families and avoid increasing the financial burden on the public through unwelcome taxation.
“Sometimes, the children are already struggling, and the parents may only leave behind a property. In such cases, if the children do not have sufficient funds to pay the tax, how can they inherit their parents' assets," said Chin.
“If the government wants to increase tax revenue, it could brainstorm various other solutions.
“These could be, among others, strengthening tax enforcement to reduce tax evasion, promoting economic growth through investment, innovation, and industry upgrades, rather than taxing the people unnecessarily,” he added.
Since tax obligations have already been fulfilled upon purchasing or acquiring property, he explained that imposing another tax upon inheritance was tantamount to double taxation, hence prejudicing the intended payer.
Utusan Malaysia reported that the inheritance tax was among five new taxes the government intended to introduce in Budget 2025 this month.
The others are carbon pricing tax, high-value goods tax (HVGT), unhealthy food tax and Artificial Intelligence (AI) tax, all of which were intended to increase revenue for the Federal Government.
The Borneo Post had reported that all five Sarawak DAP MPs would oppose the tax if it were to be tabled in the Dewan Rakyat.
Sarawak DAP chairman Chong Chieng Jen said they unanimously agreed to vote against the proposal should it be introduced, saying this was also double taxation.
Besides that, the National House Buyers Association also said the proposed inheritance tax will be levied based on the estimated current market value of the estate.
Its honorary secretary-general Datuk Chang Kim Loong noted that due to the ongoing impact of inflation, property prices have been rising for many years. This meant that beneficiaries are effectively bearing the tax burden based on the inflation rate since the acquisition of the property.
He said this was unfair to property owners, especially those who invested in real estate for their descendants.
