KUALA LUMPUR: The capital gains tax (CGT) exemption on unit trusts will likely reduce the projected income obtained from the implementation of CGT, said Deputy Finance Minister Lim Hui Ying.
However, she said the government believes that the CGT exemption on unit trusts will help to boost the capital market’s performance and benefit more than 90 per cent of individual investors.
“This exemption also aims to ensure unit trusts remain an attractive investment option in the future and accessible to the people.
“In addition, the investors, most of whom in the pre-retirement and early retirement groups, would benefit from higher returns,“ she said during a question and answer session in the Dewan Rakyat today.
Lim was replying to Ahmad Fadhli Shaari’s (PN-Pasir Mas) question about the impact of the CGT exemption for unit trusts on the projected national income.
The government is projecting an additional revenue of around RM800 million per year from the implementation of the CGT from March 1, 2024, based on the transference of share ownership trend over the past few years.
Following discussions with capital market industry players regarding the effect of CGT on the distribution of profits to unitholders, the government has agreed to exempt unit trusts from the imposition of CGT from Jan 1, 2024, until Dec 31, 2028.
