10 Nov 2021, KUALA LUMPUR (The Star): The government may raise additional net revenue of RM400mil from several Budget 2022 changes which are seen to be less punitive on the stock market compared to capital gains tax, CGS-CIMB Equities Research said.

In its strategy note issued on Wednesday, the research house said (1) a 50% rise in stamp duty rate on contract notes for trading of shares on Bursa Malaysia to 0.15% from 0.1%; (2) abolishment of stamp duty limit of RM200; and (3) exemption of 6% service tax on brokerage services related to share trading.

“The rationale for the increase in windfall profit levy rate for Sabah and Sarawak from 1.5% to 3% is to streamline the levy with Peninsular Malaysia, which has been paying a levy of 3% since 2008.

“The threshold for CPO prices has also been raised by RM500 a tonne to RM3,000 a tonne for Peninsular Malaysia and RM3,500 a tonne for East Malaysia to address rising cost of producing palm oil.

“On plans to expand sugar tax, we gather that the sugar content threshold would cover sugar added to beverages and natural sugar from ingredients, for example lactose and maltose,” it said.