KUALA LUMPUR, Oct 29 — Prime Minister Datuk Seri Anwar Ibrahim today told Parliament that the new 2 per cent tax on individual shareholders whose annual dividends exceed RM100,000 is part of the government’s effort to create a progressive tax system.

He said this tax would only affect those who can afford it, and it’s in line with the government’s agenda towards equitable distribution of income.

"This means, in rough calculation, if he has RM100,000 in dividends, it means his shares are around RM2 million. So, if you have RM2 million, just have to pay the 2 per cent.

"This way we have a progressive tax system,” Anwar, who is also the finance minister, said during Question Time.

He also said that T15 is not a new term, having been used during the diesel subsidy rationalisation earlier this year.

The Department of Statistics Malaysia (DOSM) classified a household income of around RM13,000 as T15.

However, Anwar said the government was still discussing who would be considered as T15 before it lifts the blanket subsidy to negate the possibility of burdening people.

"We are still evaluating what the quantum is because we feel that what was coined by DOSM which is around RM13,000 may be too low,” he added.

Anwar also clarified that the current threshold for the T15 income bracket was always set at RM13,000 as he slammed Pasir Puteh MP Datuk Nik Muhammad Zawawi Salleh for alleging that there were many definitions for T15.

Anwar also expressed worry over the number of parliamentarians questioning the removal of the petrol subsidy for the T15 income bracket and the new dividend tax.

"If we defend the T15, they’ll get everything.

"Is it reasonable for the government to continue giving subsidies to non-citizens and the high-income group, including the ultra-rich?” he asked when responding to Kota Melaka MP Khoo Poay Tiong’s question this morning.