KUALA LUMPUR (Aug 2): The government is targeting at least RM4 billion in additional revenue from Cukai Makmur (Prosperity Tax) for the assessment year 2022, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
“Since the imposition of Cukai Makmur is for the assessment year 2022, the amount of specific revenue collection from the tax can only be determined in the Income Tax Return Form (BNCP) for the assessment year 2022 within seven months from the end of the company's accounting year.
“Therefore, the amount of revenue collected from Cukai Makmur as requested has not been presented for the time being,” he said in a written parliamentary reply dated Aug 1 which was uploaded on the Parliament website.
The Prosperity Tax is a one-off tax measure introduced by the federal government in Budget 2022, whereby chargeable income above RM100 million will be taxed at a rate of 33%, instead of the blanket 24% rate previously. Tax is levied on a company's chargeable income and not its net profit.
Regarding the implementation of new taxes, Tengku Zafrul noted the government has not planned to implement any new taxes such as the goods and service tax (GST), windfall tax or inheritance tax in the near future.
“However, for the sake of the sustainability of tax revenue collection in the future, initiatives and studies are being carried out by the government to structure a balanced, fair, equitable taxation system so as to support and increase the country's revenue.
“This initiative is necessary to ensure that the tax revenue collection can be increased to meet the needs of activities or special rehabilitation programmes to help target groups affected by Covid-19 and higher cost of living due to the uncertainty of the global economy,” he said.
Tengku Zafrul said the government will also take into account the views and feedback of various stakeholders on the impact of implementing these measures.
“The government needs to ensure that this move does not affect the country's economic position and competitiveness in line with the ongoing efforts to attract foreign investments,” he added.
Tengku Zafrul was replying to a question by Kota Melaka Member of Parliament Khoo Poay Tiong, who had asked the finance minister to state the total revenue from Cukai Makmur so far, and whether the government is considering or planning to introduce other taxes including GST, windfall tax, or inheritance tax in the near or long term.
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