KUALA LUMPUR (Nov 12): Collection of the capital gains tax (CGT) on gains from the disposal of unlisted shares totalled RM162 million for the 2024 assessment year, according to the Ministry of Finance (MOF).
The amount fell short of earlier projections, as the MOF previously estimated that the 10% CGT, which came into effect on March 1, 2024, would generate an additional annual revenue of about RM800 million for the national coffers.
In a written parliamentary reply on Wednesday, the MOF said the revenue was influenced by several factors, including a transitional exemption period from Jan 1 to Feb 29, 2024 and the 60-day payment window following the submission of CGT returns.
In addition, amendments to the CGT-related Act, which only came into effect in June 2024, also had an impact on collection.
The CGT was first proposed in Budget 2023 as part of the government’s efforts to broaden the tax base, while ensuring higher-income groups contribute more to national revenue.
To ensure the system remains fair and does not burden investors, the MOF said that the CGT applies only to gains from unlisted shares, while listed shares remain exempt, to encourage active trading and support market liquidity.
Exemptions are also provided for companies undertaking IPOs, corporate restructuring, venture capital companies and unit trusts, supporting long-term investment and market stability.
The MOF added that regular monitoring and reviews are conducted to assess the effectiveness of the tax system and adjust policies to ensure fairness and avoid overburdening taxpayers.
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