Budget 2023 - Govt will introduce luxury goods tax starting this year
KOUSALYA SELVAM HAJAR UMIRA MD ZAKI
KUALA LUMPUR - The government will introduce luxury goods tax starting this year, Finance Minister Datuk Seri Anwar Ibrahim said.
Anwar who is also the Prime Minister said the government had no plans to implement a broad-based consumption tax such as the Goods and Services Tax (GST) since the people are dealing with various issues such as food inflation.
"Food inflation is more than five percent, wage rates are still low, so this is not the right time to introduce and implement it.
"Therefore, the government is taking a more progressive approach as a step to broadening the tax base to those who are able.
"The government plans to introduce a Luxury Goods Tax starting this year with certain value limits according to the type of luxury items," Anwar said, among the luxury items were luxury watches.
He said this at the Budget 2023 retabling at Parliament today.
In line with international best practices, Anwar said the Government will review the introduction of the Capital Gains Tax for disposal of unlisted shares by companies from the year 2024 at a low rate.
"The government will hold a session to engage with related parties to examine the details of this recommendation," he said.
