Anwar: Dividend tax reduced to 2% in response to MSME appeals

KUALA LUMPUR: The dividend tax, initially set at five per cent, has been reduced to two per cent after considering appeals, including those from micro, small and medium enterprises (MSMEs), said Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who is also the Finance Minister, noted that MSMEs had requested an exemption from the dividend tax, arguing that they differ from listed companies. He expressed willingness to consider proposals regarding the implementation of the two per cent dividend tax announced in Budget 2025, but not those seeking exemptions.

"If there is a proposal for something else, that’s fine, but don’t propose that we can’t tax the wealthy. I find that a strange notion and contrary to our principle of fair wealth distribution,” he said during the minister’s question-and-answer session in the Dewan Rakyat today. He made these remarks in response to a question from Khoo Poay Tiong (PH-Kota Melaka) about the mechanism for implementing the dividend tax on income exceeding RM100,000 for individual shareholders.



- Bernama.