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Minister: Private jets, yachts not GST-exempted

November 13, 2017 9:38 AM
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Minister: Private jets, yachts not GST-exempted

Yachts are not considered as items which have an implication on the economy or as investments, Johari said. ― Reuters picKUALA LUMPUR, Nov 13 — Private jets and yachts are not exempted from the Goods and Services Tax (GST), a minister said today.

Commercial jets as well as oil and gas floating storage and vessels, however, are exempted as they are used for “very significant investments”, said Finance Minister II Datuk Johari Abdul Ghani.

“YB, for your information YB, when the government plans its investment strategies, we prioritise the effects of it on the economy,” Johari said in reply to PKR’s Kelana Jaya MP Wong Chen.

“However, if someone buys a private jet, if someone buys a private yacht, they then have to pay GST.

“Those things are not considered as items which have an implication on the economy, as well as investments. For that, we will charge (GST),” he added.

Wong then stood up to again clarify the Johari’s reply, asking if such items were really not exempted.

Source: themalaymailonline.com

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Comments - 1
Anonymous

November 14, 2017 12:02 AM

All these taxation and comments mean that the decision makers in the MOF are not trained in basic economics - theory, applied and based on empirical evidence. The basic canons of taxation states that the taxes must be equitable and give priority to the taxpayer's ability to pay. Private jets and yachts are considered by economists as billionaires playthings and toys and should be taxed as such. For those who are in the know, even imported cars above a certain value are taxed not only with GST, levies, excise taxes, AP's, supernormal profits to importers, which can result in prices of cars being up to 3 to 5 times more expensive than the usual world prices of cars.