malaymail.com 04 May, 2021 07:15 am

Economist Jomo Sundaram calls for windfall tax on industries that benefit from Covid-19

Economist Jomo Sundaram calls for windfall tax on industries that benefit from Covid-19
KUALA LUMPUR, May 4 — The government should consider implementing a windfall tax on industries that benefit greatly from the Covid-19 crisis, according to Khazanah Research Institute senior advisor Professor Jomo Kwame Sundaram. “This is precisely the time when you must reform taxes, as you...

Asked when is the right time to re-introduce the Goods and Services Tax (GST), Jomo opined that now is the best time to introduce taxes that do not generate revenue immediately, as many were badly impacted by the pandemic.“As far as tax reforms are concerned, in a situation like this, it is the best time to introduce taxes which do not generate revenue immediately.“You do not generate revenue from taxes in the middle of a crisis,” he said.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.

“Malaysia’s tax policy, or tax to Gross Domestic Product ratio, has been on a steady decline over the medium term.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.

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