Categories: MoneyNews

Govt conducting engagement sessions to review taxes

This is to ensure the agenda to drive economic growth does not affect sectors that are in recovery process

THE government is engaging all stakeholders actively and extensively in reviewing several taxes, including the excise duty on premixed beverages and the low-value goods (LVG) tax, the implementation of which had been postponed to an undetermined date.

Finance Ministry (MoF) secretary general of Treasury Datuk Johan Mahmood Merican said this is to ensure the agenda to drive economic growth does not affect sectors that are in the process of recovery, including tourism and retail post-Covid-19.

“Because these taxes have just been postponed (should be implemented early 2023), we are still studying the matter and have not yet decided how they will be structured and when they will be implemented because we need more feedback and engagement sessions.

“We at the MoF are also examining the implementation of the luxury goods tax which involves non-controversial goods such as gold for example, and how we can have mechanisms for foreign tourists such as rebates when they shop in Malaysia,” he told the media at KPMG’s Tax and Business Summit 2022 today.

Johan said the model for the implementation of the luxury goods tax, expected to be introduced in the second half of this year, will also be developed independently and not according to the model from foreign countries.

This is because it needs to take into account the type, price and suitability of the item with the conditions in this country to be considered a luxury item.

He added that the Capital Gains Tax will be implemented in 2024 at a low rate as announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the Budget 2023 presentation on Feb 24.

Meanwhile, Inland Revenue Board (IRB) CEO Datuk Dr Mohd Nizom Sairi said the board is trying to promote a more conducive atmosphere between taxpayers and tax administrators through several approaches to create transparency and mutual trust between the two parties.

He also hoped that the IRB’s Special Voluntary Disclosure Programme (SVDP) which will run from June 1, 2023, until May 31, 2024, will give an opportunity to individuals who have never been registered as taxpayers or declared their income, to participate in the programme where no penalty will be imposed on them as before which is between 10 and 15% as in Budget 2019.

“We will provide the opportunity and want them to take advantage of this. We want to improve our services to the public. So come forward into the net and share the responsibility to develop the nation,” he said.

However, he did not specify the number of people who will participate in the programme this time. — Bernama / pic TMR FILE

Dzul

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