KUALA LUMPUR: The one-off windfall tax or Cukai Makmur (Prosperity Tax) announced last Friday in the 2022 Budget is estimated to generate at least RM3 billion in revenue for the government.
Deputy Finance Minister II Yamani Hafez Musa said the tax will be imposed on companies with taxable income of more than RM100 million in 2022.
"The first RM100 million taxable income is taxed at a rate of 24 per cent and the rest at a rate of 33 per cent on a 'one-off' basis.
"We are not sure about (the actual amount of income from the Prosperity Tax), but we expect an estimate of at least RM3 billion or more," he told the Dewan Rakyat today.
Yamani was responding to a query by Datuk Seri Ahmad Maslan (BN-Pontian) who asked the estimates of government revenue through the Prosperity Tax and whether the government is looking to re-establish a consumption tax such as value-added tax (VAT).
When tabling the 2022 Budget last week, Finance Minister Tengku Datuk Seri Zafrul Aziz announced a one-off additional company income tax where earnings above the RM100 million mark will be taxed at a rate of 33 per cent instead of 24 per cent for the first RM100 million.
The Prosperity Tax is expected to be imposed in the assessment year 2022.
Nga Kor Ming (PH-Teluk Intan) pointed out in the Lower House that Bursa Malaysia had collapsed with a loss of more than RM33 billion due to the announcement of the implementation of the Prosperity Tax.
To this, Yamani said the government was aware of the matter, adding that this may be due to concerns among investors over the introduction of the one-off tax.
"However, many analysts have said that those who exited were short-term stock players.
"If we give it a few days, this could give space to those who want to make long-term investments to get good prices for the existing shares right now," he said.
According to him, the Prosperity Tax was a result of feedback from various parties who believed that companies that were not affected during the pandemic should participate in the country's efforts to revive the economy.
"Although the increase is generally at nine per cent, it is, however, a 'one-off' thing and it is affordable as the companies were still making high profits in the previous one to two years.
"Besides, this is being implemented fairly without targeting specific industries or sectors only," he said.
Yesterday, it was reported that a cumulative RM33.8 billion was wiped off the market capitalisation on Bursa Malaysia in a knee-jerk reaction to the government's announcement.