KUALA LUMPUR: High-income earners or businessmen should not be excessively taxed by the government because that will discourage them from growing their revenue, says former International Trade and Industry Minister Tan Sri Rafidah Aziz.

According to Rafidah, taxes must be fair to all, and the elites should not be targeted by Putrajaya merely on the assumption that they are rich.

“Because it is these people who are generating income. If they have a business and we pressure them, their business might be affected, and people may be laid off.

“So, don’t just look at the money, but look at the added value of each business entity,” said Rafidah to reporters after launching a book titled “Fathers and Their Wisdom” on Tuesday (Oct 22) at the Royal Lake Club.

Rafidah also said Putrajaya should not introduce new taxes to the rich.

“Income taxes itself are already enough. Don’t add on additional taxes that discourage them from doing business.

“They will be demotivated from expanding because the bigger his business is, the more we are taking from them,” Rafidah added.

According to Rafidah, additional revenue for the government can be generated via good governance and anti-corruption measures.

“The corruption culture is rampant because we don’t have a system that gives us periodic feedback on expenditure,” said Rafidah.

The former minister said every government agency and department should spend its respective allocations in the best way possible.

“Let’s not waste the people’s money,” added Rafidah.

Meanwhile, Rafidah proposed Putrajaya to carry out a cost-benefit analysis of its plans to implement targeted subsidies next year to ensure that aid goes to those who truly qualify for it.

“The implementation (of the targeted subsidies) must be targeted at the right people,” she added.

Budget 2025 was tabled in Parliament last Friday (Oct 18) by Prime Minister Datuk Seri Anwar Ibrahim.

https://www.thestar.com.my/news/nation/2024/10/22/dont-tax-the-rich-excessively-says-rafidah