KUALA LUMPUR (July 16): The government has no plans at present to implement a 2% wealth tax on wealthy individuals to help finance government expenditure, said the Finance Ministry (MOF).

It said the contribution from a wealth tax would not be significant if tax exemptions and reliefs were granted, as is the case with other existing taxes.

“The implementation of a wealth tax, in whatever form or mechanism, must be carefully examined from various aspects, including Malaysia's relatively small and limited tax base.

“However, the government remains committed to ensuring that its tax policies are based on just and fair principles as well as being more targeted, so that the tax structure remains progressive and is able to reduce socioeconomic inequality," the ministry said in a written reply to the Dewan Rakyat.

The statement was published on the Parliament website on Wednesday.

At the same time, the MOF said it has adopted a more targeted approach by broadening the tax base to include those with greater financial capacity.

This includes the implementation of the capital gains tax on the disposal of unlisted shares, the dividend tax on dividend income exceeding RM100,000, and the tax imposed on profit distributions exceeding RM100,000 received by partners in a limited liability partnership.

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