KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has stated that the Finance Ministry is currently finalising various policies related to the High Value Goods Tax (HVGT) to ensure that the low income group is not negatively affected. This includes determining the types of items to be taxed and setting thresholds.
Anwar mentioned that the luxury tax, now known as HVGT, will be calculated based on the type and category of items, as well as the respective thresholds. He also revealed that the ministry is in the final stages of deciding on several policies concerning HVGT, such as the types of items and the threshold values.
In response to a question by Roslan Hashim (PN- Kulim-Bandar Baru), Anwar addressed concerns regarding the imposition of a tax for jewelry at RM10,000 increments and its potential impact on individuals from the middle and low income groups.
Providing another written response, Anwar highlighted that the devaluation of the Ringgit has a greater impact on imported goods, particularly affecting items like meat, dairy, seafood, vegetables, and fruits.
He acknowledged that B40 households are more susceptible to the depreciation of the Ringgit, especially since they allocate a significant portion of their expenditure towards food items, accounting for 35.4% of their total expenses.
Anwar noted that while global commodity prices have stabilized to some extent, the devaluation of the Ringgit still poses challenges, particularly in terms of inflation. This was in response to a query by Datuk Larry Sng (PBM-Julau) regarding the effects of the devaluation on economic performance, households, and manufacturing sectors.
Emphasizing Malaysia’s status as an exporting country, Anwar pointed out that the depreciation of the currency can lead to translation gains. However, he also acknowledged the negative consequences of a weaker Ringgit, including increased business costs, reduced disposable income, and savings for households.
As part of the government’s efforts to support vulnerable groups, Anwar mentioned the Payung Rahmah initiative, which aims to assist those in need. He reassured that the government will continue to regulate prices and provide subsidies for essential items like food and fuel.
To enhance household income sustainability, Anwar affirmed the government’s commitment to creating more high-skilled job opportunities and promoting high-productivity employment.
