Government will introduce a more balanced and fair tax system if the economy improves – Mohd Shahar
KUALA LUMPUR: The government will introduce a more balanced and fairer tax system if the country’s economy improves, said Deputy Finance Minister I Senator Mohd Shahar Abdullah (Photo) noted.
He said any fiscal measure to be implemented in the future would certainly take into account stakeholder involvement.
âAs has been stated by the government, we recognize that the tax system must be more balanced, fair and equitable by generating national revenues so that we come back to the people.
“The government of today is very worried and will not introduce fiscal measures without taking into account the well-being of the population and the economic stability and viability of the country, especially for businesses,” he said. he told Dewan Negara today.
Mohd Shahar said this in response to a supplemental question from Senator Robert Lau Hui Yew on whether the government would reintroduce the Goods and Services Tax (GST) and its implementation date.
Earlier, responding to Senator N Balasubramanian’s original question about the government’s achievements in implementing alternative taxation such as the windfall tax and the earnings tax, Mohd Shahar said so far that the government had not fully implemented the Capital Gains Tax (CGT).
However, he said that ongoing initiatives and studies were underway to structure a more balanced, fair and equitable tax system in order to support and increase national revenues.
“The government must ensure that the fiscal measures that will be implemented will not weigh on the population and affect the economic situation and will be able to improve the country’s competitiveness in accordance with the national recovery plan,” he said. declared.
Mohd Shahar said that the government has applied since 1999 the Windfall Profit Levy Act (Law 592) on the amount of profits exceeding the threshold value of the market price of crude palm oil of RM 2,500 per tonne for the peninsula and of RM3,000 per tonne for Sabah and Sarawak.
He said that the imposition of the palm oil tax has succeeded in providing an additional RM 4.1 billion in revenue to the government since its introduction until September of this year.
âThe government takes note of the views from various quarters that a windfall profit tax should be imposed on certain companies that generated extraordinary profits during the Covid-19 pandemic,â he added. – Bernama