KUALA LUMPUR, 10 Oct: It has been proposed for the Federal Government to use the Capital Gains Tax (CGT) to replace the Goods and Services Tax (GST) which will be implemented in April 2015.
The Vice President of PKR, Rafizi Ramli, said that the CGT was announced in the Pakatan Rakyat Budget 2015 which targets a total of RM3 billion in additional tax revenue.
“The Pakatan Rakyat Budget uses another way that does not burden the people by using other taxes such as the CGT.
“Pakatan Rakyat needs to implement things proposed with other means that do not burden the people,” said Rafizi who is also the Member of Parliament for Pandan in a media conference in Parliament yesterday.
According to Rafizi, the implementation of the GST which will come into effect in April 2015 will impose tax on everyone, including people earning a low income.
Hence, he said that the CGT is a progressive tax that only applies to the wealthy, large companies and does not apply to people earning a low income.
“The CGT was introduced for tax profits involving stock transactions, bonds and optional shares like the ESOS,” he said.
NS
