![\"windfall\"](\"https:\/\/newmalaysiatimes.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-04-at-14.45.20.png\")
<\/figure><\/div>\n\n\n\n\u201cYou do not generate revenue from taxes in the middle of a crisis,\u201d he said.<\/p>\n\n\n\n
The Finance Ministry told the Dewan Negara in December last year that the government had no plans to impose a windfall profit levy on rubber glove manufacturers which had been enjoying supernormal profits from the higher demand and selling price of rubber gloves worldwide, nor to other businesses that have profited greatly due to the pandemic.<\/p>\n\n\n\n
Responding to the same question, Institute of Malaysian and International Studies research fellow, Muhammed Abdul Khalid pointed out that policymakers tend to ignore the imposition of capital gains tax from the GST when it comes to the issue of tax reform.<\/p>\n\n\n\n
\u201cTaxes must be fair… and we never talk about the urgency of imposing capital gains tax, maybe because it is going to affect the very well-off in Malaysia,\u201d he said.<\/p>\n\n\n\n
Nevertheless, Muhammed said, the most important thing is to ensure good governance and to make sure taxpayers\u2019 money is used well by the authorities.<\/p>\n\n\n\n
Meanwhile, touching on the current taxation framework, Bank Negara Malaysia assistant governor Norhana Endut noted that the government\u2019s tax collection capacity has not kept pace with the economic growth.<\/p>\n\n\n\n
\u201cMalaysia\u2019s tax policy, or tax to Gross Domestic Product ratio, has been on a steady decline over the medium term. It fell to 12 per cent in 2019 from 15.6 per cent in 2012,\u201d she said.<\/p>\n\n\n\n
Norhana noted that Malaysia\u2019s individual income tax also continues to come from a narrow pool of taxpayers.<\/p>\n\n\n\n
For instance, she said that in 2018, among the labour force of 15 million people, only 2.5 million were taxpayers.<\/p>\n\n\n\n
\u201cWith this, expanding the tax base should be a priority over the medium term,\u201d she said, adding that the existing tax incentives and exemptions should be reviewed on a regular basis, as some of them are outdated and ineffective.<\/p>\n\n\n\n
On plans to introduce new taxes, Norhana said the new taxes should be efficient, simple, fair and progressive with an effective re-channelling mechanism, as well as enhance the productivity of the economy.<\/p>\n\n\n\n
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