KUALA LUMPUR – Recognising the lack of policies to help the government increase its revenue as announced in Budget 2022, Datuk Seri Mohd Shafie Apdal (Semporna-Warisan) has proposed the introduction of a luxury tax.
The Warisan president noted that the only significant measure was the introduction of a one-off windfall tax to be charged on companies that make profits of over RM100 million next year.
“As such, I am proposing that the government consider imposing a luxury tax for the purchase of any non-essential, luxurious goods and services that go over a certain price.
“Among the items that can be taxed include supercars, yachts, private jets, high-valued jewellery and any other luxury goods,” he said when debating the Supply Bill (2022) in the Dewan Rakyat today.
Shafie said Malaysia would also not be the first country in the world to impose such a tax system, noting that several neighbouring states have taken similar measures.
“For your information, this luxury tax has been imposed by a number of developed countries for some time. In Asia, nations like Thailand and Indonesia also have a similar tax on the rakyat,” he said.
Commenting further, the former Sabah chief minister said next year’s budget appears to be one with a “feel-good factor”, but lacking in effort to reduce the country’s debt or reinvigorate the economy.
“I am also of the opinion that a budget should not serve as a treasure chest for any particular quarters to take advantage of and reap profit.
“Stern action must be taken against those involved in leakages, corruption and power abuse,” he said. – The Vibes, November 2, 2021
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