Muda slams govt over cancellation of luxury goods tax plan
Muda acting president Amira Aisya Abdul Aziz
SHAH ALAM - The Malaysian United Democratic Alliance (Muda) has criticised the government's decision to abandon the proposed High-Value Goods Tax (HVGT), calling it a clear sign that the administration is not serious about implementing a fairer fiscal policy for all.
Acting president Amira Aisya Abdul Aziz said HVGT would have been a more just taxation mechanism as it targeted only the ultra-rich and focused on items such as watches, luxury handbags, accessories and other high-value goods.
'This is yet another step that shows the hypocrisy of the Madani Government. They once said they wanted to tax the ultra-rich, but the plan to introduce a tax like HVGT has been completely abandoned.
'The Madani Government must remember that they are supposed to defend the common people, not protect the elites. Previously, the government announced that with the introduction of HVGT, it could generate tax revenue of RM700 million.
'What is the government's plan to replace that estimated revenue?,' Amira said in a statement on Wednesday. Muda acting president Amira Aisya Abdul Aziz
She further questioned whether the Madani Government's rhetoric on taxing the wealthy was genuine or merely performative.
Amira pointed out the government's apparent urgency in expanding the Sales and Services Tax (SST), contrasting it with the lack of commitment in pursuing taxation on luxury consumption.
'If luxury goods have already been included in the expanded scope of the SST, what is the estimated tax revenue the government expects to collect and how does the government intend to classify which revenue comes from luxury goods?
'I believe the government is still confused when it comes to classifying goods under the SST, to the point where even basic necessities are being taxed more, while luxury goods remain untouched,' she said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysiakini
5 hours ago
- Malaysiakini
Bung warns against rakyat bearing brunt of expanded SST
PARLIAMENT | Putrajaya should avoid burdening the rakyat with high sales and service tax (SST) rates, said Bung Moktar Radin (BN-Kinabatangan). While the Sabah BN chief acknowledged that taxes are a necessary measure for the government to generate revenue and implement transformative developments, he argued that such levies should not be imposed at a rate that would put further pressure on the rakyat.
New Straits Times
6 hours ago
- New Straits Times
Govt weighs unexplained wealth order, no green light yet: Amir Hamzah
KUALA LUMPUR: The government is not ready to make any final decision regarding the implementation of the Unexplained Wealth Order (UWO), although he acknowledges that the proposal is being seriously studied. Finance Minister II Datuk Seri Amir Hamzah Azizan said the proposal is one of the ideas that deserves attention but requires thorough research before any action is taken. "We cannot rush into implementing it. I have received the proposal to assess the implementation of the UWO, and we will look into it seriously. "However, for now, the government is not ready to make a final decision," he said at the 2025 National Tax Conference. Recently, former Klang MP Charles Santiago called on the government to introduce legislation enabling the issuance of UWOs, highlighting it as a necessary tool to combat illicit wealth accumulation and systemic corruption among the elite. Amir Hamzah said any new policy, including UWO, must go through a research and in-depth understanding process to evaluate its implications on the economy and the public at large. "We do not want to implement a policy that ultimately brings negative or unintended consequences. What's important is to fully understand the implications before making any decision," he added. On the implementation of tax on high-value goods, he said the government always adopts a targeted approach to ensure that the tax burden falls only on those who can afford it. "For example, when we expanded the Sales and Services Tax (SST), we carefully examined which segments could bear the tax burden. Basic goods widely used by the public are exempted from SST, while tax is only imposed on non-essential or luxury items." He added that in the healthcare sector, taxes are imposed on foreigners receiving treatment in Malaysia, while in the education sector, tax is only applied to high-income groups above the age threshold of 60.
New Straits Times
7 hours ago
- New Straits Times
Govt weighs unexplained weath order, no green light yet: Amir Hamzah
KUALA LUMPUR: The government is not ready to make any final decision regarding the implementation of the Unexplained Wealth Order (UWO), although he acknowledges that the proposal is being seriously studied. Finance Minister II Datuk Seri Amir Hamzah Azizan said the proposal is one of the ideas that deserves attention but requires thorough research before any action is taken. "We cannot rush into implementing it. I have received the proposal to assess the implementation of the UWO, and we will look into it seriously. "However, for now, the government is not ready to make a final decision," he said at the 2025 National Tax Conference. Recently, former Klang MP Charles Santiago called on the government to introduce legislation enabling the issuance of UWOs, highlighting it as a necessary tool to combat illicit wealth accumulation and systemic corruption among the elite. Amir Hamzah said any new policy, including UWO, must go through a research and in-depth understanding process to evaluate its implications on the economy and the public at large. "We do not want to implement a policy that ultimately brings negative or unintended consequences. What's important is to fully understand the implications before making any decision," he added. On the implementation of tax on high-value goods, he said the government always adopts a targeted approach to ensure that the tax burden falls only on those who can afford it. "For example, when we expanded the Sales and Services Tax (SST), we carefully examined which segments could bear the tax burden. Basic goods widely used by the public are exempted from SST, while tax is only imposed on non-essential or luxury items." He added that in the healthcare sector, taxes are imposed on foreigners receiving treatment in Malaysia, while in the education sector, tax is only applied to high-income groups above the age threshold of 60.
