Can inheritance tax be the answer to wealth inequality?

AmBank Group chief economist Anthony Dass(pic), who is projecting a 4.5% GDP growth this year for Malaysia, said the economic growth hinges largely on domestic demand and private investment. To this end, he told StarBiz it is imperative for the government to arrest the alarming decline in private-sector investments which has slid from 6.9% in the third quarter of last year (3Q18) to 0.4% in 1Q19.

ONE of the most hated tax is the “inheritance tax” which hardly anyone pays in many countries. An inheritance tax, sometimes referred to as an estate tax, may apply to that accumulated amount so that the government can still get a piece of the action even after the family has held a wonderful service for the one who passed away.

Until recently, this paradox appeared to make raising more money from inheritance tax a no-go region. Yet some are now talking about it as a way to deal with growing inequalities and redistribution between generations while helping raise revenue for the government.