Consider inheritance tax to widen tax base, MP suggests

savemalaysia

Publish date: Wed, 18 Oct 2023, 09:59 PM

KUALA LUMPUR (Oct 18): An avenue Putrajaya can explore to further widen its revenue base is the reintroduction of inheritance tax, according to a lawmaker.

In the Dewan Rakyat on Wednesday (Oct 18), Kuala Selangor MP Datuk Seri Dzulkefly Ahmad questioned why an inheritance tax was not included among the government’s measures announced under Budget 2024 to widen its revenue collection.

“On taxes, we are introducing the capital gains tax and a luxury goods tax, but why did we not reintroduce the inheritance tax?” he asked during the debate session on Budget 2024.

While not commonly known, Malaysia used to have an inheritance tax via the Estate Duty Enactment 1941 - which was repealed back in November 1991.

In fact, Dzulkefly highlighted this while also underlining that Prime Minister Datuk Seri Anwar Ibrahim, who also holds the Finance Minister post currently, held the finance portfolio at that time.

“Developed countries have implemented it, and it would be quite lucrative if we implemented it.

For example, recently in South Korea, the heir of Samsung was subjected to a US$6 billion inheritance tax to inherit his father’s wealth,” he said, citing an example using South Korea’s inheritance tax that ranges from 10% to 50%.

While Dzulkefly was cognisant that an inheritance tax may turn wealthy individuals away from Malaysia, he reasoned that “wealth is not solely generated from an individual’s efforts but is enabled by the opportunities granted by the country”.

“The tax system is a redistribution of wealth, it is redistributive justice,” he claimed.

https://www.theedgemarkets.com/node/686699

Discussions

Be the first to like this. Showing 14 of 14 comments

speakup

Tun M & sons will be the first to whine!

2023-10-20 07:39

EngineeringProfit

This should exempt M40 & B40.

2023-10-20 07:54

beinvested

The government is looking for ways to increase the revenue so to fund the high cost and expenditure in its administration.

The excessive cost of borrowings from the unnecessary large amount of national debts has been burden to the financial position and ultimately enslaving the local money currency for the coming years.

A normal borrower would likely to be able to full settle the bank loan/housing in a given period of 20 years. But with the national debts of nearly a trillion, the repayment in interest alone will already disadvantage the economy and to full settle in 20 years will be almost impossible.

When the Ringgit was RM3.10 for a SGD, the market was not panicked and now at RM3.40 will neither slumber nor sleep.

By the way, against the USD, how not it will drop further given the wealth of the country is not improving.

The most effective way is to reduce the expenditures and at the same time increase the revenue.

2023-10-20 12:56

EngineeringProfit

This tax should exempt M40 & B40.

2023-10-20 13:38

Income

Engineering… all kena inheritance tax not only T20,
B40 & M40 also kena later the inheritance tax,

2023-10-20 15:27

Income

T20 will move their wealth to other countries and theirs children can migrate to other countries easier.
T20 is clever than your MP. That’s why T20 can accumulate a lot of wealth in this country and they T20 are smart enough to find ways to transfer their wealth to other countries..

2023-10-20 15:31

Income

—-
While Dzulkefly was cognisant that an inheritance tax may turn wealthy individuals away from Malaysia

2023-10-20 15:32

Income

Do the government want to kill the goose or T20 which lay golden egg???

2023-10-20 15:34

EngineeringProfit

Quote:" Income > 3 minutes ago | Report Abuse

T20 will move their wealth to other countries"

That's why - end up only the M40 will be poorer. And their next gen will add to the B40 statistics

2023-10-20 15:38

Income

MP thinks T20 bo do kah? Msia will slowly end up with T20 moving all their wealth to other countries and T20 can anytime apply for Citizenship in the country that they relocate their wealth to. Do you think Old Horse children money is in Msia? Think harder please lah my dear MP.

2023-10-20 15:53

Income

The only way to help B40 and M40 is to teach them how to generate more money themselves. Don’t tax T20 until all of T20 moving out of Msia because can’t stand the higher and higher taxes anymore each passing year…

2023-10-20 15:56

beinvested

In the USA, one particular President had caused the debts so much, so much so that it is more than the debts incurred from all the earlier 43 Presidents in combination.

One later government will take care the mess caused by one current government. There are public funds and spending them indiscriminately is not of the concern unless these monies come from their personal pockets.

A popular and responsible government will think of ways the poor economy and only will pass to another crooked government to flush away those accumulated wealth easily. The debts incurred are in the name of the country and those individual lawmakers can only do so much before being voted out before can start to worry for the sufferings that overwhelmed each human being.

2023-10-20 16:08

EngineeringProfit

Quote: "One later government will take care the mess caused by one current government. There are public funds and spending them indiscriminately "

Let's call this the Sheraton Move phenomenon for now

2023-10-20 16:49

AnakUlar

Ah yo. Previous government policies were not implemented.

2023-10-20 16:51

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