Luxury tax only targets those who don't pay their fair share of taxes, says minister

KUALA LUMPUR: The luxury goods tax will only likely target those who don't pay their fair share of taxes, says Datuk Seri Tiong King Sing.

"From my understanding, the tax is only targeted at those with incredible wealth but pay next to nothing in taxes while enjoying the benefits of living in Malaysia.

"An example are those who pay their tax rates at the B40 level but have over 10 luxury cars in their home.

"This is extremely unfair to the people which is why the tax structure is still being carefully developed by the Finance Ministry," the Tourism, Arts and Culture Minister told reporters before the launch of the “It's the Time” Holidays Malaysia Song Campaign at Dataran Merdeka on Sunday (Feb 26).

He added that he had yet to receive any information on the possible details of the luxury goods tax from the Finance Ministry.

On Friday (Feb 24), Prime Minister Datuk Seri Anwar Ibrahim announced a luxury goods tax for certain luxury brands, like watches and fashion goods, that would be implemented as part of the government's efforts to tackle the country's current rising cost of living issue

The proposed tax has since drawn concerns from tourism players across the industry with many fearing that it would cripple the country's attractiveness as a tourist shopping hotspot.