Budget 2023: Government to impose luxury tax on branded items and capital gains tax

Malay Mail
Malay Mail

KUALA LUMPUR, Feb 24 — The government is proposing luxury tax for items such as branded watches and fashion items starting this year to diversify its tax income from the wealthy.

Prime Minister Datuk Seri Anwar Ibrahim in his speech said that the government wanted to make more progressive moves to expand the tax base on those in the upper income bracket.

“We are proposing introducing the luxury goods tax starting this year with a minimum value depending on the items.

“Some of the items included are luxury branded watches and branded fashion goods,” said Anwar, who is also finance minister.

In line with international best practice guidelines, the government is also studying how to introduce a capital gains tax for unlisted share disposal by companies.

“The government will have a meeting with the relevant people to look into the details of this proposal,” he said.