KUALA LUMPUR, April 5 — The luxury goods tax announced in Budget 2023 is not an alternative to the goods and services tax (GST), said Deputy Finance Minister II Steven Sim Chee Keong.
He added that the ministry is refining the tax and studying several aspects of it, such as the tax structure and the rate to be imposed.
“Apart from that, we are also studying the tax system, whether to introduce a new tax or widen the scope of the existing tax system,” he said in his winding-up debate on the Supply Bill 2023 in Dewan Negara.
The Finance Ministry is also getting feedback from sessions with stakeholders, such as manufacturers, retailers, and tourism industry players on the luxury goods tax, he revealed.
Sim said the government has not decided on the GST as a change in tax policy would have a big impact on the economy and the cost of living.
“This is not an appropriate time to reintroduce the GST as the people are struggling with the cost of living post-pandemic,” he noted.
On Budget 2023, the deputy minister said the budget is aiming for more targeted aid toward those who need it.
“Budget 2023 will also support the M40 income group which has been badly affected for more than two years due to the pandemic, with their income having fallen more than 50 per cent.
“The budget will also help micro, small, and medium enterprises (MSMEs),” he added.
The Supply Bill 2023 was passed by Dewan Negara today without amendments and with a majority voice vote.
