KUALA LUMPUR: The introduction of Capital Gains Tax (CGT), set to commence on March 1 next year at the rate of 10 per cent, is projected to yield about RM800 million in annual revenue.
Prime Minister Datuk Seri Anwar Ibrahim said the CGT will only be imposed on the disposal of unlisted shares, including companies, limited liability partnerships, cooperatives, and trusts, whether they are local or foreign entities holding shares in a company.
"Relevant legislative amendments are currently being carried out. Guidelines will also be issued to provide clearer explanations regarding the implementation of the CGT," said Anwar, who is finance minister in a written reply dated Nov 7.
He was responding to a question from Datuk Mohd Radzi Jidin (PN-Putrajaya) about whether the government had undertaken a study regarding the impact of implementing CGT on unlisted shares, the proposed schedule for CGT implementation and the estimated revenue stemming from its enforcement.
Anwar clarified that the government's decision not to impose the CGT on listed shares is driven by the aim of ensuring the continual development of the stock market for established listed companies and safeguarding investors' trust.
"This move will also enhance the competitiveness of the country's capital market on a global scale," he said.
Anwar said the government believes that the initial step of implementing the CGT with a focus on the disposal of unlisted shares in local companies by taxpayers other than individuals is appropriate.
"This step aligns with the direction of simplifying and improving tax administration, and also diversifying the sources of national income," he added.
