Prime Minister Datuk Seri Anwar Ibrahim among initiatives announced in Budget 2023 to increase revenue for the country has proposed to introduce a Luxury Goods Tax from this year with a certain value limit according to the type of goods, including watches and fashion.
Anwar explained that a more progressive approach was taken as a new step to broaden the tax base to those who have the means. “In line with international best practice, the government is also studying to introduce Capital Gains Tax for the disposal of unlisted shares by companies from 2024 at a low rate. “The government will hold an engagement session with relevant parties to examine the details of this proposal,” he said when presenting the 2023 Budget in Parliament today.
In the meantime, Anwar who is also the finance minister informed that the government has no plans to implement the goods and services tax (GST) despite the hardships of the people and high food inflation. “In a situation where most people are still struggling, food inflation is over five percent, wage rates are still low, now is not the right time to introduce and implement it,” he said.
