THE government proposes to introduce a new tax on luxury goods this year for watches and other fashion items, Prime Minister Anwar Ibrahim said. 

He said this was part of the government’s progressive approach to broaden the tax base.

Anwar also said the government has no plans to implement a broad-based consumption tax such as the Goods and Services Tax (GST).

“Most people are still struggling, food inflation is over 5%, wage rates are still low, so now is not the right time and place to introduce and implement it,” he said while tabling Budget 2023.

Anwar, who is also the prime minister, said a study will be conducted to introduce a low-rate capital gains tax for the disposal of unlisted shares by companies from 2024.

He added that the government would hold an engagement session with relevant parties to examine the details of this proposal. –  February 24, 2023.