KUALA LUMPUR – Seeing the current economic situation, the government will not be implementing the goods and services tax (GST), said Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2023 in Parliament today.
In his role as the finance minister, Anwar said Putrajaya will be focusing on other more progressive taxes on those who can afford it.
“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 told the lower house that his administration will be introducing luxury goods tax this year.
Among the luxury items that will be taxed include luxury watches and expensive fashion items.
The government is also planning to impose excise duty on liquid or gel products containing nicotine that are used for electronic cigarettes and vaping.
He said this is a concerning issue as nicotine vapes, being illegal, are still widely sold and are estimated to be worth more than RM2 billion.
“It would be great if it were regulated and taxed so as not to encourage the use of vaping.”
Meanwhile, half of the excise duty revenue will be re-allocated to the Health Ministry to improve the quality of health services and an effective anti-smoking and anti-alcohol campaign.
The government also decided not to increase the electricity tariff for the majority of the people, but the electricity tariff is more concentrated towards the upper class.
However, they exclude domestic consumption, SMEs, the food and agriculture sectors.
Other measures introduced include the distribution of Amanah Saham Bumiputera (ASB) dividends which are more to the people in need where 87% of members with savings of less than RM30,000 have been given a 5.1% dividend, while savings over RM30,000 receive a 4.6% dividend per unit.
The government will also be taxing capital gains tax based on the disposal of unlisted shares beginning 2024, at a low rate.
Anwar said that the government will be holding engagement sessions with the stakeholders to fine tune these new taxes.
The Tambun MP voiced his administration’s support for former health minister Khairy Jamaluddin’s Generational Endgame policy to stop the sales of nicotine or tobacco products to Malaysians born from 2007 onwards.
To lessen the leakages, government enforcement agencies are working together with the industry players to combat smuggling syndicates dealing in diesel, alcohol and cigarettes.
“The Inland Revenue Board and the Royal Customs Department will reimplement the voluntary confession programme.
“Through this programme, a 100% pardon will be granted to those who voluntarily confess from June 1, 2023 to December 31, 2024,” said the Tambun MP. – The Vibes, February 24, 2023
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