The government is recommending that a "luxury goods tax" be adopted this year, which would apply to expensive apparel and fashion items as well as and high-end watches. Other than that, income taxes increased by 0.5% to 2% for people making between RM100,000 and RM1 million annually while 2% reduction on income tax will be imposed to those earning within the RM35,000 to 100,000 bracket.

Meanwhile, the poor in Malaysia will be given more assistance in more ways than one. Specifically, depending on the number of children, members of the B40 group with household incomes below RM2,500 are eligible for Rahmah cash assistance up to RM2,500. The Rahmah cash assistance beneficiaries who are registered in the eKasih system will receive food baskets and coupons for basic food items totaling RM600, according to the prime minister.

Also, according to Anwar, the government has no plans to enact a comprehensive consumer tax similar to the Goods and Services Tax (GST). "Most people are still struggling, food inflation is over 5%, wage rates are still low, so now is not the right time and place to introduce and implement it," he added.

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