Muhyiddin: Why tax cheap goods for poor but not luxury items for rich

PARLIAMENT | Bersatu president Muhyiddin Yassin has labelled the government’s policy as topsy-turvy when expressing concerns over the delay in implementing the high-value goods tax (HVGT).

Speaking during today’s debate on the Supply Bill 2025 in the Dewan Rakyat, Muhyiddin (PN-Pagoh) highlighted that the HVGT was originally set to be introduced this year but there has been no official update on its progress.

“We’ve heard nothing about it. Has it been postponed or cancelled? Meanwhile, the 10 percent sales tax on low-value goods has been in effect since January.

“It seems unfair that the poor, who purchase cheaper goods, are taxed, while the wealthy, who buy expensive items, are not. This is a backward policy,” remarked the former prime minister.

Prime Minister Anwar Ibrahim announced the HVGT in his Budget 2024 speech in 2023, with an expected implementation date of May 1, 2024.

However, on March 30, Bernama reported that the government was still engaging with relevant stakeholders to finalise the tax details.

Utusan later in July reported that Anwar explained the delay was to provide more time to refine the policy and related legislation, ensuring its implementation would be orderly, efficient, and aligned with international best practices.

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