Luxury Tax is on the way – what goods will be affected, how will it be implemented? theSun theSundaily tax luxurylifestyle business Finance
is a lot of noise around Luxury Tax. Some regard this as taking money from the rich and giving it to the. There is a lot of uncertainty surrounding this tax: What goods will be subject to Luxury Tax; what is the threshold at which it will be imposed; rate of tax; how will it be collected; etc.
The starting point is to define what is considered “luxury” in the context of the Malaysian economy. Generally, luxury goods are expensive goods bought by rich people that are not essential items for day-to-day living. The main purpose is to broaden the tax base and, in a way, to redistribute the wealth from the ultra-rich to the others. Equally important in light of the current budget deficit we are facing, is to generate additional tax revenues to reduce the deficit. Although the amount collected may be small when compared to the expected tax collection by IRB and Customs of RM164 billion and RM54 billion respectively, every extra million helps.
For example in the case of gold jewellery, people from the lower end up to the higher end buy gold for both investment purposes and for personal enjoyment. It may not be appropriate to impose luxury tax on items that may be expensive, but it is bought by both the rich and the middle class.How do you tax it?
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Targeted subsidy, price of goods among focus in Parliament sitting on March 27KUALA LUMPUR: Issues on targeted subsidy, prices of goods and food security are among matters to be raised in Parliament on Monday (March 27).
Read more »
Ex-DAP lawmaker tells Wan Fayshal to stop fake news on Yayasan Albukhary’s tax exemption matterKUALA LUMPUR, March 26 — Former DAP Bukit Bendera MP Wong Hon Wai today said that political debates should be based on facts and evidence instead of using fake news and mere...
Read more »
No need for threats, Wan Fayhsal tells Guan EngThe Bersatu Youth chief hits back at the former finance minister, in a row over the tax status of Albukhary Foundation.
Read more »
Wan Fayhsal lodged false police report, says Guan EngThe Bersatu Youth chief had lodged a police report yesterday against Prime Minister Anwar Ibrahim and the former finance minister over the tax exemption issue involving Albukhary Foundation.
Read more »