KUALA LUMPUR: The proposed one-off windfall tax called “Cukai Makmur” and proposed changes to the stamp duty on contract notes for listed share trading may lead to a knee-jerk reaction and dampen market sentiment in the near term, says Malacca Securities Sdn Bhd.
Under Budget 2022, the government has proposed to impose the Cukai Makmur on companies (other than the micro, small and medium enterprises) that generate high income during the Covid-19 period effective the year of assessment 2022. The chargeable income above RM100mil will be taxed at 33%, while a 24% tax rate applies for chargeable income of up to RM100mil. “Around 15% of the public listed companies are having more than RM100mil pre-tax profit and the total earnings impact will be roughly a decline by 10%-12% on the FBM KLCI heavyweights,’’ it said. — BernamaMalacca Securities said stock broking firms and Bursa Malaysia may also experience softer trading activities amid the removal of capping of RM200 contract notes stamp duty effective Jan 1, 2022.
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