KUALA LUMPUR: The luxury goods tax which is being fine-tuned will not affect the country's tourism sector, said Deputy Finance Minister Steven Sim Chee Keong.
He said tourists to Malaysia were not interested in shopping for luxury goods, instead they came here to visit interesting destinations, national heritage sites and buy local handicrafts.
"At the same time, they also get tax relief on the purchase of Malaysian handicrafts. If we look at it from that perspective, we are actually encouraging more people to come," he told reporters at the lobby of Parliament building today.
He was commenting on the call by former prime minister Datuk Seri Ismail Sabri Yaakob for the government to reconsider the implementation of the luxury goods tax as this would deter tourists who wish to shop in Malaysia.
Sim said the implementation of the tax was to expand the country's tax collection and create a more progressive taxation system without causing the industry to suffer.
"We are engaging with all stakeholders, including the retail and tourism sectors, to see how the impact can be reduced," he said.
Sim said the tax only applied to goods classified as luxury goods and did not involve essential goods such as food and mobile phones.
When tabling the 2023 Budget, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim proposed to introduce a luxury goods tax this year, which would be limited certain goods, like watches and fashion items, which he said would increase national revenue. – BERNAMA
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