KUALA LUMPUR: The government has proposed to progressively widen its tax base by introducing a 2% tax on dividend income of over RM100,000 received by individual shareholders.
Prime Minister Datuk Seri Anwar Ibrahim said during his Budget speech that the initiative was so income tax was not shouldered only by wage earners, but also by company owners and individuals with shareholdings of millions of ringgit.
"Consideration will be given to give exclusions to dividend income from government savings such as the Employees Provident Fund, share trusts under Pemodalan Nasional Bhd and dividend income from abroad," said Anwar, who is also the Finance Minister.
