KUALA LUMPUR – DAP chairman Lim Guan Eng has questioned whether the government could be seen as “lokek” (stingy) for imposing a 10% sales tax on imported low-value goods (LVG) below RM500, amidst the rising cost of goods and services, as well as inflation.
During the debate on the proposed Sales Tax (Amendment) Bill 2022 in the Dewan Rakyat today, Lim expressed his bewilderment on why the government is imposing a new tax that would severely impact poor families.
“Let’s not politicise the issue, we want to help the government but if you go down to the kampung to explain the issue (that) de minimis goods under RM500 are also taxed.
“Wouldn’t they say that ‘wah’ this government is lokek, do you want to tax all the low-value goods too?”
“I don’t think that should be the way, I think taxes should be imposed on those who are able to pay,” he said.
The proposed sales tax for LVG is currently set at a 10% flat rate.
In an earlier speech, Deputy Finance Minister I Datuk Mohd Shahar Abdullah explained the LVG tax was meant to provide a level playing field for local sellers and manufacturers.
The tax is also crucial to plug a loophole under the current tax regime, where some parties had abused the de minimis facility by valuing items far below the threshold rate.
Malaysia’s de minimis rate is at RM500.
Earlier in his speech, Lim argued that the government should instead waive the 10% sales tax to local sellers and find better means to broaden its revenue stream.
In response to Lim’s speech, Shahar explained that the government also projected to receive some RM200 million annually from the new tax and assured that it will be disbursed back to the public via subsidies.
The bill was then passed by the Dewan Rakyat today. – The Vibes, August 4, 2022
.jpg)
