Taxes need to be introduced carefully

"The only thing that the CGT and inheritance tax have in common is that they are both taxes – but they are not comparable in this context," says Soh of KPMG Malaysia.

BELOW are excerpts of Q&A with PwC Malaysia tax partner Lavindran Sandragasu, KPMG Malaysia head of tax Soh Lian Seng and Deloitte Malaysia country tax leader Sim Kwang Gek on the newly proposed capital gains tax or CGT.

StarBizWeek: Is the proposal to have a CGT on the sale of private companies the best solution for a government looking to raise tax receipts? In your opinion, are other options more damaging, for example, a CGT on stock market share sales and/or inheritance tax?