GEORGE TOWN: The anticipated implementation of the High-Value Goods Tax (HVGT) will create a comprehensive tax system for small and medium-sized enterprises (SMEs), mainly impacting gold and jewellery manufacturers, it was pointed out.
Federation of Malaysian Manufacturers Penang chapter chairman Datuk Seri Lee Teong Li said several rounds of discussion were held to quantify the amounts or levels associated with complete import goods.
Complete import goods is when an item arrives completed in one piece and is taxable for the whole piece, such as jewellery.
“These taxes are clearly designed to bolster government coffers, especially to fund social programmes and public services, as well as to reduce dependency on traditional revenue sources like oil and gas,” Lee said.
It was reported that the government is expected to introduce five new taxes under Budget 2025 to promote healthier lifestyles, support sustainable living and address economic inequality.
According to reports, the taxes are unhealthy food tax, carbon pricing tax, inheritance tax, HVGT and Artificial Intelligence tax.
Lee said it is important to have views and dialogues with relevant stakeholders like manufacturers, financial institutions and the public, as these taxes would affect everyone’s livelihoods in one way or another.
“The carbon pricing tax is a step forward towards achieving net-zero emissions targets. We are trying to align with global trends towards decarbonisation.
“It could push industries to adopt greener technologies but the challenge will be balancing economic growth with environmental responsibilities, especially in sectors like manufacturing and energy, which form key parts of the economy.
“Hopefully, more initiatives will be introduced to support these programmes, especially for SMEs and micro SMEs,” he added.
Lee also said the carbon pricing tax and unhealthy food tax would further align with global health and environmental trends, reflecting Malaysia’s longer-term vision for a healthier society and greener economy.Consumers Association of Penang (CAP) president Mohideen Abdul Kader said taxes like the HVGT would help promote social equity.
“Taxing the wealthier segment of the population can promote social equity by redistributing wealth and discouraging excessive consumption of non-essential luxury items.
“The HVGT is a tax placed on goods considered expensive, unnecessary and non-essential.
“It is an indirect tax that increases the price of goods or services, incurred only by those who purchase or use the products and luxury services.
“Countries that have luxury goods tax include Indonesia, Botswana, Chile, Thailand, Tunisia, Turkey and Hungary. This is something CAP has called for during previous budgets,” he said.Mohideen said CAP had also previously proposed an inheritance tax.
“We recommended something similar to estate duty or estate tax, on the net worth of an individual at death.
“Not all estates should be subject to tax. Only estates of and above a certain value should be included,” he said.
Mohideen also said limiting the tax to sugar-sweetened beverages may drive consumers to alternative sources of sugar, which works against the goal of the tax.
“There are many other food items like ice-cream and biscuits that could still lead to the over-consumption of sugar.
“As the government’s aim in introducing the tax is to curb obesity, diabetes and other health problems, it should focus on taxing all high-sugar foods and include all drinks where sugar is added,” he said.
Penang health committee chairman Daniel Gooi said the sugar tax should be implemented based on the current situation of diabetes cases in the country.
“Diabetes cases are rising at an alarming rate, not just among adults but children too.
“This tax will be a good mechanism to curb the consumption of sugary drinks,” he said.
Gooi said based on statistics from the National Health and Morbidity Survey 2023, 15.6% of Malaysians have diabetes – one in every six adults in Malaysia.
“What is alarming is that 84% of adults aged between 18 to 29 don’t know they have diabetes due to a lack of health consciousness. “Penang is one of the diabetes-prone states because of our food and lifestyle,” he said.
