a day ago
- Business
- South China Morning Post
Malaysians brace for rising costs on goods and homes as new taxes target premium items
The backlash against fresh government taxes, set to take effect next month, intensified on Friday, with
Malaysians being warned that they will be forced to pay more for locally made goods and even homes as supply chain costs are passed on to buyers.
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Prime Minister
Anwar Ibrahim 's administration on Tuesday announced that it would levy taxes of between five and 10 per cent on premium items, such as salmon and silk, as well as high-end services across finance,
education
healthcare and beauty.
The move – intended to address budget deficits – has sparked significant concern among Malaysians, who fear paying higher prices for everything from imported bananas and apples to new homes, as manufacturers pass down costs.
Businesses 'may have no choice but to pass these additional burdens on to consumers,' the Federation of Malaysian Manufacturers (FMM) said in a statement late on Thursday.
According to the federation, nearly all imported goods, particularly industrial equipment such as pumps, compressors, boilers, and furnaces, as well as commercial and equipment leasing, will be affected by the tax, which will come into force just before
US tariffs are expected to take effect.
Malaysians face higher costs for goods and homes due to new government taxes. Photo: Shutterstock
Real estate developers have cautioned that homebuyers may incur additional costs, as many new projects are being constructed on commercial land, which falls under the new tax.
