The former Prime Minister, Datuk Seri Najib Razak has proposed a 2-year temporary recovery tax targeted at the wealthy in Malaysia in an effort to increase the government’s revenue.
He said this during the Parliament session yesterday (15 September), adding that Malaysia’s fiscal position is the weakest in Asia Pacific, and second worst in the world after Venezuela.
“I propose a temporary Covid-19 recovery tax package for two years. This, for example, will include a windfall tax, luxury condominiums development tax, stamp duty on transactions, inheritance tax, stock market trading tax, and higher personal income tax on high-income individuals.”
“After two years, we can end this temporary tax.” he said.
Meanwhile, he also suggested the government to tax the tech giants that are currently operating in Malaysia, including Amazon, Netflix, YouTube, Google, where they had raked in tons of profit, but have never paid taxes in Malaysia.
“This is not new. Other countries like Australia and Indonesia have demanded payment and they received it from these companies. Malaysia must do the same.”
In addition, he advised the government to keep up with global trends, especially the highly lucrative cryptocurrency market.
He said that Bitcoin alone is worth almost US$1 trillion (RM4.16 trillion) and he cited a few countries which have started to accept the cryptocurrency, including Switzerland, Australia, Singapore, and South Korea.
The Securities Commission has previously approved 4 platforms for cryptocurrency trading but he said this initiative must be improved.
“We must give Malaysian investors the opportunity to cooperate with international cryptocurrency trading platforms. This will encourage and make it easier to allow foreign cryptocurrency holders to bring their assets into the country as soon as possible.”
“This in turn will allow us to invest in local fiscal assets. Our target should be to bring in cryptocurrency assets instead of allowing an outflow of Malaysian currency into the international market. We must be able to attract international investors.”
“If we can do this, we can announce to the world that Malaysia’s back.” said Najib.
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Watch the full speech here: