The capital gains tax debate

According to Socio Economic Research Centre executive director Lee Heng Guie, the capital gains tax can distort investment decisions, and hence affect capital allocation in the economy.

PETALING JAYA: A capital gains tax may be a potential option for the government to consider in an effort to enhance its revenue base. However, such a measure has drawn mixed views, with one economist citing the potential economic costs that could impact negatively on growth.

According to Socio Economic Research Centre executive director Lee Heng Guie, the capital gains tax can distort investment decisions, and hence affect capital allocation in the economy.