Exemption of Capital Gains Tax is not for someone who has contributed funds to FijiFirst – AG

Minister for Economy, Aiyaz Sayed-Khaiyum has stressed the exemption of Capital Gains Tax is not for someone who has contributed funds to the FijiFirst while National Federation Party Leader, Professor Biman Prasad has questioned why the Government has suddenly decided that people who owned shares before 2011 should not pay Capital Gains Tax when they sell them.

Prasad says the Government has suddenly chosen this time to give away more money to rich people by exempting them from Capital Gains Tax.

Prasad adds they want to know who all will benefit from this change.

Sayed-Khaiyum says Prasad did not highlight that Australia has done the same thing where they have exempted shares that were issued prior to the Capital Gains Tax coming into effect.

He says there is also no Capital Gains Tax if you buy and sell shares on the stock-market.

The Income Tax Amendment Bill No. 2 has been passed.

The passing of the bill means Capital Gains Tax will be removed on shares held by a person before 1st May 2011.

If a person is required to pay Capital Gains Tax on the disposal of shares held by the person before 1st May 2011, and has not paid it, he or she is no longer required to pay this tax and any action or suit for the recovery of the unpaid capital gains tax immediately ceases.

If a person paid Capital Gains Tax before the commencement of this amendment, the payment of the tax is not refundable to the person.