Govt to introduce luxury goods tax, no GST for now

The government will be introducing a luxury goods tax which will come into force this year.

Prime Minister Anwar Ibrahim said this is part of progressive efforts to tax those who are well off.

The rate for the luxury goods tax was not disclosed, but Anwar said there would be a ceiling based on the type of goods.

Among the items that would be taxed, he said, are luxury watches and fashion items.

Meanwhile, the government will also impose a Capital Gains Tax on the sale of unlisted shares by companies starting next year.

"The government will hold an engagement session with relevant parties to examine the details of this proposal," he said, adding that this was in line with international best practices.

On the Goods and Services Tax (GST), Anwar said now is not the right time to re-introduce it as the people are struggling and low wages are still a problem.

"The government has no plans to bring back GST. In a situation where most people are still struggling, food inflation at over five percent (and) low wage rates, it is evident that it is not the right time to implement it," he stressed. - Mkini