Introduce luxury tax on supercars and private jets to boost got revenue, suggests Shafie

KUALA LUMPUR: The government should introduce a tax on luxury items such as high-end cars, yachts, private jets and other high-value items to increase government revenue, suggests Datuk Seri Mohd Shafie Apdal.

The Parti Warisan Sabah president said there was no comprehensive policy to boost government revenue except for the proposed one-off prosperity tax targetted at companies with more than RM100mil yearly profits.

"The government should consider imposing a luxury tax on every purchase of luxury goods and non-essential services that exceed a certain price.

"Among the items that can be taxable include supercars, yachts, private jets, jewellery and other luxury items," he said while debating Budget 2022 in the Dewan Rakyat here on Tuesday (Nov 2).

He added that certain developed countries impose luxury taxes, including some in the Asean region such as Thailand and Indonesia.

The former Sabah chief minister also called on the government to increase allocations for Sabah and Sarawak in Budget 2022.

The Semporna MP said the community development expenditure for Sabah and Sarawak only amounted to RM10mil, whereas the Orang Asli, Chinese and Indian communities were allocated RM200mil, RM145mil and RM274mil respectively.