Making their choices: Customers browsing and buying gold jewellery at SMS Deen Jewellers in Jalan Masjid India, Kuala Lumpur. — AZMAN GHANI/The Star
PETALING JAYA: Jewellery may be deemed as luxury items for the wealthy but it is also culturally sought after by Malaysians including those in the B40 group, says Inland Revenue Board (LHDN) chief executive officer Datuk Mohd Nizom Sairi.
“The government realises that in our culture, jewellery does not necessarily mean luxury. This is because it is not only bought by the rich.
“In our culture, one still has to buy jewellery as part of a marriage ceremony,” he said during a recent interview with The Star.
He was asked if the proposed luxury tax would include jewellery, which is also bought by those in the B40 group.
Mohd Nizom said these were among the questions raised during a post-Budget 2023 seminar involving several agencies.
“Is it to be based on a threshold or based on items and who do we tax?
“Of course, the government is still doing studies on the matter and we are looking at how it will be done,” he said.
“Mas kahwin” is a must in Malay Muslim weddings as it is given by the groom to the bride to seal their marriage contract.
It is also customary among Hindus for the bride’s family to offer a dowry to the groom, usually gold in the form of jewellery.
On concerns from retailers that the luxury tax may affect the nation’s status as a tourism shopping heaven, Mohd Nizom said this was also raised during the seminar.
“Some say that it will affect tourism as some tourists come here because we are a shopping heaven, especially for luxury items.
“The question is how then do we maintain this so that we don’t lose tourists and that the retailers don’t lose their business.
“Maybe we will look at in terms of tourist expenditure in the form of exit refunds.
“These are among the things being looked at but I can’t say if it will come to that,” he said.
He said luxury tax is deemed indirect tax and is being handled by the Customs Department.
“LHDN is involved in direct taxes and we will be looking at capital gains tax.
“We are currently working with the Finance Ministry on this and looking at models best suited for us by looking at how it is done in other countries,” he added.
