KUALA LUMPUR: The proposed income tax rates for the M40 and T20 group in Budget 2023 did not mention if there would be increased taxes for those making RM1mil and above annually, said Datuk Seri Hamzah Zainuddin (PN-Larut).
“It only mentioned up to RM1mil. What about those making more than 1mil?” Hamzah questioned during his speech on Budget 2023 in Parliament.
Hamzah said the government could introduce a windfall tax mechanism to ensure those with extraordinary wealth could assist the poor.
“Sometimes, this is one of the ways to ensure that those who’ve gotten windfall profits are helping the poor,” added Hamzah.
In Budget 2023, it was announced that the income tax will be raised by 0.5 to two percentage points for those making between RM100,000 to RM1mil annually.
Hamzah criticised plans to raise income tax by 0.5 to two percentage points for those making between RM100,000 to RM1mil annually.
“Let’s look at this again to determine this. Let’s not take from the rich to help the poor,” added Hamzah.
Hamzah also briefly commended the government over its plans to reduce income tax rates by two percentage points for those earning RM100,000 and below annually.
Meanwhile, Hamzah said the proposed luxury goods taxes in Budget 2023 could deter tourists from shopping in the country.
“Isn’t Malaysia known as a shopping haven for tourists? If foreign tourists are here and they see expensive prices, they will be afraid to buy,” said Hamzah
Hamzah also said it was concerning that there was an absence of a consumption-based tax such as the Value Added Tax (VAT) or the former goods and services tax (GST) that was implemented by neighbouring countries.
He said that under these tax systems, tourists can make claims upon exiting the country.
“Otherwise, they (tourists) will compare with our neighbouring countries and the chance to make Malaysia a shopping heaven does not achieve its aim,” said Hamzah.
“The rich with money, they can buy despite the proposed luxury goods tax,” added Hamzah.
During the tabling of Budget 2023 last Friday (Feb 24), Prime Minister Datuk Seri Anwar Ibrahim said there are plans to introduce a luxury goods tax on items such as luxury watches and fashion items this year.
Anwar also said the government has no plans to reimplement the abolished GST.
