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Govt can generate RM1 bil annually by imposing global minimum tax against super-rich, says senator

Publish date: Thu, 30 Nov 2023, 04:37 PM

KUALA LUMPUR: The government has been asked to consider introducing and imposing a global minimum tax against millionaires, which is expected to enable the country to raise RM1 billion in revenue annually.

Senator Datuk Hisamudin Yahaya said the proposed tax mechanism, which he coined as the global millionaire tax, will not only help the government to generate new source of income but also to carry out international clampdown on tax evasion involving super-rich individuals.

The proposed tax mechanism, said Hisamudin, will also help the government to reduce the wealth disparity between the richest and poorest, which has continued to widen over the years.

"I would like to call on the government to put an end to introducing and imposing tax against consumers as it will burden the people, especially those in the B40 income category.

"While the rich continue to prosper, the poor will be left behind. It is time for the government to focus on the wealthy, who should contribute more towards the prosperity of the country.

"Therefore, I would like to propose the government to introduce global millionaire tax in the country," he said when debating the 2024 Supply Bill in the Dewan Negara here today.

Hisamudin added that governments around the world have started planning to introduce the global minimum tax against super-rich individuals in the respective countries.

"In the United States, president Joe Biden has put in plans in the 2024 Budget to a tax with a minimum rate of 25 per cent against the wealthy, who accounted for 0.01 per cent of the country's population.

"The tax mechanism similar to the global millionaire tax is already implemented in France to track any millionaires hiding their wealth," he said.

On other matters, Hisamudin also proposed the government to consider introducing urban subsidy scheme to cushion the impact of the targeted subsidy implementation against city dwellers.

In the event the government accepted his suggestion, he proposed several conditions for city dwellers to be eligible for the scheme.

"For example, the government can set several conditions including earning RM5,000 and below and that they are residing in the federal territory in order for them to be eligible for the scheme," he said.

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