KUALA LUMPUR, April 6 — Deputy Finance Minister Lim Hui Ying stated that the government has decided against imposing a capital gains tax on the disposal of shares of listed companies at present, citing concerns about maintaining the competitiveness of the local stock exchange. Lim made this announcement during the conclusion of the debate on the Income Tax Bill (Amendment) 2024 in the Dewan Negara today.
Lim emphasized that the proposed amendments to the Income Tax Act 1967 (Act 53) aim to enhance tax policy and administration, comprising nine clauses. These enhancements include the introduction of a capital gains tax (CGT) and the implementation of e-Invoice, among other tax administration amendments. The implementation of CGT is intended to broaden the tax base and align with international best practices, while e-Invoice adoption aims to bolster tax administration efficiency and combat revenue leakage from the shadow economy.
Furthermore, Lim highlighted the Labuan Business Activity Tax (Amendment) Bill 2024, which incorporates changes related to e-Invoice implementation. The amendments, designed to improve tax administration under the Income Tax Act 1967, came into effect on January 1, 2024, marking significant strides in tax policy reform.
