Malaysia a New Dawn
Why Capital Gain Tax Must be Implemented
Why do I think Malaysia Government should implement capital gain tax?
People may say that CGT will kill our market, foreign funds will cease to invest in our country. But think about it this way, our market has a very low foreign investment participation, our weighting in the MSCI Asia Index is approximately 3% only. So, I think that implementation of CGT won't kill our market because there's not much foreign funds left in our country.
Or we could do it this way, only apply CGT to the local investors and not foreign funds if we really are so desparate for foreign funds to invest in Bursa. Why only CGT to our local investors? Because as we all know, Malaysians are one of the most if not the most unproductive bunch of people in the world, just look at the people in GLCs especially and you would notice why they are even getting paid for being so unproductive. CGT may help curb the non-value adding activities of speculation in Bursa, thus help these people be more focused on their jobs. Nowadays, so many young people are thinking that the stock market is a place for easy money and many of them I met prefer not to work but just trade the stock market full time. Anything wrong about that? No, it's just money changing hands, it doesn't add value at all to the economy.
Secondly, the CGT revenue could help our current government to cut down their debts which is definitely good for our country. CGT revenue can also be used for further developments of our country which I think is what really drives the economy.
So, I wouldn't be surprised if Budget 2019 has some sort of capital gain tax on our share market.
One thing I would like to note is this young man Jon Choivo, he has written a great piece of article on Capital Gain Tax:
https://klse.i3investor.com/blogs/PilosopoCapital/178100.jsp
Discussions
Be the first to like this. Showing 50 of 104 comments
tomorrow watch budget or not? historically moment, no need to see jib gor talk...lol....
2018-11-01 21:48
LGE most famous is talking M'sia RM 1 trillion debts what else he can do? Stock market, RM under him good?
2018-11-01 21:51
his 1 Trillion debt already push down KLCI from 1800+ to 1700 in 5 months lah aiyo
2018-11-01 21:52
i din say i support contra gain tax leh....i myself kena....but i am 100% against capital gain tax...
2018-11-01 21:53
aiyoyoyo if really contra gain taxes then I wait 3 more days lahh wakakakak then no more contra gain liao wakakakaka
2018-11-01 21:54
Uncle, after 1 yr, a ctr may not longer exist in planet klse! These days, punting boleh, invest memang x boleh! If Uncle do not wish to see us gamble and lose, Uncle should campaign for gomen to improve corporate governance, clean up all listed arms so that these co r profitable n worth long term investment. Look at the cause of the problem, Uncle. Not impose penalty by taxing retailers who try so hard to improve their livelihood.
Posted by OldUnclee > Nov 1, 2018 09:47 PM | Report Abuse
lizi, you are right I think contra gain taxes would be more appropriate. Instead of buying and selling stocks within a week, holding it for at least 1 year will get tax deduction entitlement. That's the better way for the market and more productive for everyone.
2018-11-01 22:04
if got capital gain tax, then must have tax deduction for capital losses, then u will see how many actually lose money in bursa. Govt if implement , then i think they think many making big money in bursa wait till see the tax deduction bill then they know how bad it is .
2018-11-01 22:07
Yes hollandking, I think if the CGT is done, they need to have a system that records Capital losses or contra losses which can be deducted against any future gains, that is only fair if it's implemented.
2018-11-01 22:11
holland king comment always good, must change name d.... coz he always prevent ppl to go holland! haha
2018-11-01 22:14
want capital gain tax can, but make sure if we lose money we can deduct from our tax also!
2018-11-01 22:15
aiyoyoyoyo now want to scold old man liaooo ahh kikiki... Tax foreign funds then say no foreign investment inflow, don't tax foreign funds then Malaysia become Bankrupt Nation, how lah??? Wakakakaka tax also cannot, don't tax also cannot
2018-11-01 22:32
If v earn our ministers type of salary, “maybe” kena tax kaw kaw la! ( or maybe “those above their range only will be taxed kaw kaw“?!) Dunno la.
Anyway, they promise not to burden rakyat. https://www.thestar.com.my/business/business-news/2018/11/01/new-tax-in-2019-budget-will-not-burden-the-people/
Lets hope so la.
2018-11-01 23:45
The government should implement IQ tax so this oldunclee doesn't have to pay a penny.
2018-11-02 01:12
Uncle better you propose tax everything gst100% casino 100% make everything collapse, one time tax everything 996 thanks
2018-11-02 02:37
rubbish article,malaysia foreign fund low?who told you that?do you know foreign fund and retailers hold more than 30% of listing company shares?that worth more than RM500 billion!
even 20% foreign fund and retailer sell off their share,thats means more than RM100 billion,KLCI will drop to 1200-1300 or even low,you dont care your retirement fund but other people do.
no speculation means no volume,then how people Buy or sell shares?all stock broker and reminsier deserve to eat shit?bursa gotta eat shit too?all relevant businesses should eat shit too???
so just shut your mouth and dont pretend you know economy or financial market well.
2018-11-02 03:14
No wonder latest by-election in PD so many contested. Easy money for them if win.
2018-11-02 03:43
MACC urges all MPs to declare their assets, plans to make asset declaration an obligation
Read more at https://www.thestartv.com/v/macc-urges-all-mps-to-declare-their-assets-plans-to-make-asset-declaration-an-obligation#ZWSsxzighcTPmPg1.99
2018-11-02 03:43
wakakakakaka hi many butthurt people wake up in middle of night to scold this Uncle ahhh so funny lah you all
2018-11-02 07:41
apa lanciao lah you all, wake up 1am 2am 3am do what? Play US market? wakakakak or scared until cannot sleep
2018-11-02 07:41
wahhh ironrobe so geng leh, got masters in economy and financial market kah? kikiki typical sozai Malaysian, talk big like so geng tapi tin kosong wakakaka
2018-11-02 07:48
If the losses in stock market can use to offset my annual income, then I think I will be paying 0 taxes for the next 5 years. haha...
2018-11-02 08:07
Albukhary you need be off the market then, or else you will lose all your money hahaha
2018-11-02 08:08
CGT ... a not smart idea, destroy massive wealth and collect tiny revenue only.
2018-11-02 11:12
Oh no, bad news... new taxes...announced...
I get out of my shares now. Bye bye
2018-11-02 12:29
if CGT on, vote to PH no more.... bursa already lembab, still want to introduce taxes.... promote the bursa popularity first lah....
2018-11-02 13:27
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OldUnclee
lizi, you are right I think contra gain taxes would be more appropriate. Instead of buying and selling stocks within a week, holding it for at least 1 year will get tax deduction entitlement. That's the better way for the market and more productive for everyone.
2018-11-01 21:47