SHAH ALAM - The Malaysian United Democratic Alliance (Muda) has criticised the government's decision to abandon the proposed High-Value Goods Tax (HVGT), calling it a clear sign that the administration is not serious about implementing a fairer fiscal policy for all.
Acting president Amira Aisya Abdul Aziz said HVGT would have been a more just taxation mechanism as it targeted only the ultra-rich and focused on items such as watches, luxury handbags, accessories and other high-value goods.
“This is yet another step that shows the hypocrisy of the Madani Government. They once said they wanted to tax the ultra-rich, but the plan to introduce a tax like HVGT has been completely abandoned.
“The Madani Government must remember that they are supposed to defend the common people, not protect the elites. Previously, the government announced that with the introduction of HVGT, it could generate tax revenue of RM700 million.
“What is the government's plan to replace that estimated revenue?,” Amira said in a statement on Wednesday.
She further questioned whether the Madani Government’s rhetoric on taxing the wealthy was genuine or merely performative.
Amira pointed out the government’s apparent urgency in expanding the Sales and Services Tax (SST), contrasting it with the lack of commitment in pursuing taxation on luxury consumption.
“If luxury goods have already been included in the expanded scope of the SST, what is the estimated tax revenue the government expects to collect and how does the government intend to classify which revenue comes from luxury goods?
“I believe the government is still confused when it comes to classifying goods under the SST, to the point where even basic necessities are being taxed more, while luxury goods remain untouched,” she said.