Malaysia

Tax the rich: Najib proposes 2-year temporary recovery tax

Package would include windfall levy and stamp duty on transactions, among others, says ex-PM

Updated 2 years ago · Published on 15 Sep 2021 1:43PM

Tax the rich: Najib proposes 2-year temporary recovery tax
Datuk Seri Najib Razak says Bitcoin alone is worth nearly US$1 trillion (RM4.16 trillion) and that a few countries such as Switzerland, Australia, Singapore, and South Korea have started to accept the cryptocurrency. – The Vibes file pic, September 15, 2021

by Azril Annuar

KUALA LUMPUR – Former prime minister Datuk Seri Najib Razak (Pekan-BN) is proposing a temporary recovery tax targeted at the wealthy for the next two years in an effort to bolster government coffers.

In his debate of the royal address today, he said Malaysia’s fiscal position is the weakest in Asia Pacific, and second worst in the world after Venezuela.

“I propose a temporary Covid-19 recovery tax package for two years. This, for example, will include a windfall tax, luxury condominiums development tax, stamp duty on transactions, inheritance tax, stock market trading tax, and higher personal income tax on high-income individuals.

“After two years, we can end this temporary tax.”

He also suggested that the government tax tech giants that have a presence in Malaysia, such as Amazon, Netflix, YouTube, Google, and Facebook, which have raked in a lot of profit, but have never been taxed here.

He said this should not impact consumers, and instead be levied on the companies’ profit margin.

“This is not new. Other countries like Australia and Indonesia have demanded payment and they received it from these companies. Malaysia must do the same.”

Meanwhile, he advised Putrajaya to keep up with global trends, particularly the highly lucrative cryptocurrency market.

Najib said that Bitcoin alone is worth nearly US$1 trillion (RM4.16 trillion) and that a few countries such as Switzerland, Australia, Singapore, and South Korea have started to accept the cryptocurrency.

Even though he acknowledged that the Securities Commission has approved four platforms for cryptocurrency trading, he said this initiative must be improved.

“We must give Malaysian investors the opportunity to cooperate with international cryptocurrency trading platforms. This will encourage and make it easier to allow foreign cryptocurrency holders to bring their assets into the country as soon as possible.

“This in turn will allow us to invest in local fiscal assets. Our target should be to bring in cryptocurrency assets instead of allowing an outflow of Malaysian currency into the international market. We must be able to attract international investors.

“If we can do this, we can announce to the world that Malaysia’s back,” said Najib. – The Vibes, September 15, 2021

Related News

Malaysia / 3w

PM wants IRB to collect more revenue than projected in 2024

Business / 1mth

Malaysia's tax collection among the lowest in the region

Malaysia / 3mth

Najib applies for DNAA in RM27 million SRC case

Malaysia / 4mth

Parliament to discuss move to tax shadow economy

Malaysia / 5mth

Budget 2024: govt to boost EV, urges public to accept usage

Malaysia / 5mth

Budget 2024: govt plans to implement global minimum tax in 2025

Spotlight

Events

UK alumni lauded for stellar achievements as British Council observes 75 years in Malaysia

Malaysia

Don’t let politicians, activists stir up hatred against KK Mart, PBK tells cops

By The Vibes Team

Malaysia

7.7 mil people registered in Padu, 2.5 mil cyberattacks, but not one success: Rafizi

By Stephen Then

Malaysia

Farewell Aunty Bersih, you will be missed

By Ian McIntyre

Malaysia

Couple make two trips to workshop to find trapped kitten in car

Malaysia

KK Mart founder, director charged with wounding religious feelings of others over 'Allah' socks

By The Vibes Team

You may be interested

Malaysia

Review of taxation structure, SARA among focus of parliament today

Malaysia

Sabah polls: We will let BN leadership decide on partners, says Bung

By Jason Santos

Malaysia

Speed limit at George Town World Heritage Site reduced to 40 km/h

By Shahrim Tamrin

Malaysia

Muhyiddin files for leave to review Court of Appeal ruling reinstating power abuse charges

Malaysia

Blanket of red as tens of thousands of jellyfish washed ashore at KK beach

By The Vibes Team

Malaysia

Nuzul Al-Quran: PM calls on Muslims to analyse, interpret the Quran

Malaysia

Forest fires at Sarawak-Brunei border the size of 220 football fields

By Stephen Then

Malaysia

Padu: No need for excessive information unrelated to one’s financial status, says Abang Jo

By The Vibes Team