Malaysia to tax luxury watches and other expensive fashion items starting this year
In its effort to improve the current economic situation and reduce the cost of living, the Malaysian government has decided to introduce a luxury goods tax instead of reintroducing the goods and services tax (GST) which was implemented during Najib Razak’s administration, said Prime Minister Anwar Ibrahim during the tabling of Budget 2023 in Parliament today.
Anwar, who serves as finance minister, asserted that Putrajaya will concentrate on additional, more progressive taxes for those who can afford them.
“The government has not decided on reimplementing a wide consumer-based tax such as the GST. Seeing how the people are suffering, with food inflation hitting more than 5% and low wages, this is not the time to introduce and implement it.
“The government will be taking a more progressive approach as new methods to expand taxes for those who can afford it.”
He informed the lower house that his administration plans to implement a luxury goods tax this year.
Luxury watches and expensive fashion items are among the items that will be taxed, he said.
In comparison to the amount announced by former finance minister Tengku Zafrul Abdul Aziz last October, the total allocation for Budget 2023 has increased to RM386.10 billion.
The allocation announced today is the highest one to date and is 16.3% higher than the Budget enacted under Ismail Sabri Yaakob’s leadership.
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