Malaysia

Govt expects at least RM3 bil from prosperity tax collection: deputy minister

Levy should be quite affordable for those that found great profit in last 2 years, says Yamani Hafez Musa

Updated 4 years ago · Published on 02 Nov 2021 1:41PM

Govt expects at least RM3 bil from prosperity tax collection: deputy minister
Through the prosperity tax, companies with taxable income up to the first RM100 million will be subject to income tax at a rate of 24% and the remaining taxable income will be taxed at a rate of 33% for the 2022 assessment year. – AFP pic, November 2, 2021

KUALA LUMPUR – The government expects to collect at least RM3 billion through the implementation of the prosperity tax announced in Budget 2022, said Deputy Finance Minister II Yamani Hafez Musa.

He said the prosperity tax was proposed as a result of suggestions from many parties who wanted companies not affected by the Covid-19 pandemic to participate in efforts to revive the country's economy.

Through the prosperity tax, companies with taxable income up to the first RM100 million will be subject to income tax at a rate of 24% and the remaining taxable income will be taxed at a rate of 33% for the 2022 assessment year.

“Even though the increase is generally 9%, it is a one-off tax and quite affordable as companies have been making high profits in the previous two years.

“It will be implemented fairly and does not target any specific industries or sectors,” he said during the oral question-and-answer session at Parliament today.

He said this when answering a supplementary question from Datuk Seri Ahmad Maslan (BN-Pontian) about the estimated amount that the government will get through the implementation of the prosperity tax.

Meanwhile, Yamani said the government had not yet implemented the capital gains tax comprehensively, including imposing a tax on capital market profits. 

“The government also has no plans to reintroduce the inheritance tax as a measure to increase national revenue,” he added. – Bernama, November 2, 2021

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