2023 Budget: Government To Introduce Luxury Goods Tax
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Prime Minister Datuk Seri Anwar Ibrahim in tabling the 2023 Budget today said the government plans to introduce the Luxury Goods Tax beginning this year. Among them are luxury watches and high fashion.
He however did not elaborate on the taxation’s mechanism.
Anwar meanwhile said the government would look into excise duty on vape liquids that contain nicotine.
“Although vapes with nicotine are still illegal, the reality is that it is being sold widely and is estimated to be worth RM2 billion ringgit. It is good if it is regulated and taxed in a bid to discourage vape use,” he said.
He also said the government supported the generational end game (GEG) bill and was in agreement that half of the excise duty collected would be channeled to the Health Ministry to improve the quality of healthcare services.
M40 Not Sidelined
With regard to the M40 group, Anwar said the government has agreed to reduce the individual income tax rate by 2 per cent for local residents effective this year.
With the reduction, Anwar said it is estimated that some 2.4 million taxpayers will have extra RM1,300 cash in hand.
As for those with high income, there will be an increase in their income tax rate of between 0.5 and 2 per cent, but this would only affect less than 150,000 taxpayers.
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