Reintroducing inheritance tax not practical, says Dr Wee

PETALING JAYA: Reintroduction of the inheritance tax is not practical and will only burden the people, says Datuk Seri Dr Wee Ka Siong.

The MCA president this in response to Kuala Selangor MP Datuk Seri Dr Dzulkefly Ahmad who had suggested that the government may consider implementing the inheritance tax, which could be a valuable source of tax revenue

Dr Wee said Barisan Nasional had abolished the Act in 1991 and it should not be reintroduced.

"I do not agree as I see inherited properties as a subject that has been handed down from our ancestors or parents.

"If one inherits a property but is being imposed a tax and cannot afford it, they will end up selling up the land or property that is their family heritage.

"This has been experienced since Merdeka till 1991 when we abolished the Act.

"So don't bring it back as it is not practical and will burden the people," said Dr Wee in a video posted on his Facebook page.

Dr Dzulkefly, who is Amanah's strategy director, when debating the 2024 Supply Bill, had called for the inheritance tax to be reintroduced, saying the government could earn significantly from this.

He said the inheritance tax could act as a proper redistributive justice and Malaysia could take a page from the Organisation for Economic Cooperation and Development (OECD) countries that had implemented it.

The inheritance tax was imposed under the Estate Duty Enactment 1941 but was repealed in November 1991 by then prime minister Tun Dr Mahathir Mohamad.