by S BIRRUNTHA / pic BLOOMBERG

THE government has no plans to implement the Goods and Services Tax (GST) this year.

Prime Minister Datuk Seri Anwar Ibrahim said in a situation where most people are still struggling, food inflation is over 5% and wage rates are still low, now is not the right time to implement GST.

“The government is taking a more progressive approach by broadening the tax base to those who can afford it.

“The government plans to introduce a tax on luxury goods starting this year with a certain value limit according to the type of luxury goods such as luxury watches and luxury fashion items,” he said while tabling the Budget 2023 in Dewan Rakyat today.

In line with international best practice, he said, the government will also study to introduce the Capital Gains Tax for the disposal of unlisted shares by companies from 2024 at a low rate.

He noted that the government will hold an engagement session with relevant parties to examine the details of this proposal.