Recently, the government announced that they are cancelling its plan to implement the high-value goods tax (HVGT) as the Ministry of Finance (MOF) shared that the principle for the imposition of the HVGT was applied in the review of sales tax, meaning that luxury goods are taxed at a rate of 5% to 10%.
However, some people aren’t exactly happy about this.
The Perikatan Nasional (PN) Women’s Wing condemned the government decision, describing it as unfounded and failing to reflect true fiscal justice.
According to a report by Sinar Harian, their Information Chief, Nurul Syazwani Noh, shared that the decision clearly showed the imbalance of government policies that oppress low and middle-income earners, while at the same time giving special privileges to the rich.
She further explained their stance that the government seem to be taking the position that buying kitchen items is an economic activity that should be taxed, but purchasing luxury items worth tens of thousands of Ringgit is exempt from any additional fiscal burden.
“We would like to emphasise that this is not reform, but rather a betrayal of the people’s suffering,” she said.
Bring back HVGT, slow down on SST?
With that, she stressed that the government should re-implement the HVGT comprehensively and progressively, while reviewing the expansion of the Sales and Services Tax (SST) so that it doesn’t continue to burden the B40 and M40 communities.
“While the RM100 cash assistance that was supposed to be distributed to the poor is also enjoyed by the rich, now the luxury goods tax has been officially cancelled,”
“The question is, is the Madani Government still on the side of the B40 people, or is it increasingly bowing to the interests of the rich? Is the often-vaunted principle of social justice still maintained or has it been sacrificed for the sake of staying in power?” she added.
What do you think about this? Do feel free to share your thoughts in the comment section.
Also read: PMX Tells M’sians, Especially High Income Groups, Not to Look Down on RM100 Cash Aid
