Prime Minister Datuk Seri Anwar Ibrahim has announced during the retabling of Budget 2023 that the government intends to introduce a luxury goods tax for branded items, as well as capital gains tax. This is as the government seeks to expand the tax base on individuals who fall within the upper income bracket.

The luxury goods tax is expected to be implemented starting from this year, with a minimum value set depending on the luxury item. “Some of the items included are luxury branded watches and branded fashion goods,” said Datuk Seri Anwar, without elaborating further on the mechanics that will be adopted for the implementation of this new tax.

Aside from that, Datuk Seri Anwar – who is also the Finance Minister – said that the government is also looking to introduce capital gains tax for unlisted share disposal by companies, starting from 2024. However, the government will need to carry out studies beforehand, and hold engagement sessions with relevant parties to look into the details of this proposal.

On top of that, the prime minister reiterated that the government has no plans to implement the Goods and Services Tax (GST) for now as it is not the right time. This is as most people are still struggling financially, given the current environment of high food inflation rate and low wage rates.

• TAGS:
• Budget 2023
• Budget 2023 Re-Tabling
• Capital Gains Tax
• Datuk Seri Anwar Ibrahim
• Luxury Goods Tax