GEORGE TOWN: The Consumers Association of Penang (CAP) wants several taxes to be increased in the 2019 Budget which will be tabled by Finance Minister Lim Guan Eng next month in a bid to encourage a healthier lifestyle.
Its president SM Mohamed Idris said among the taxes it wanted increased was the tax imposed on fast food and liquor.
He said if the taxes for these items were hiked, then people may be discouraged to go for them, thus reducing the unhealthy lifestyle they have been adopting all this while.
“If that is the case (tax for fast food is increased), then less people will go for such food, which is known to be unhealthy.
“This will also encourage the people to cook at home and opt for more healthy offerings.
“Similarly, if the taxes for fashionable goods and designer labels are hiked up, then people will not buy them and will have greater savings,” he told the NSTP.
The 2019 Budget, the first under the Pakatan Harapan government, is scheduled to be tabled on Nov 2.
Lim had said that new taxes may be rolled out to generate government income.
Economists and market observers had said that the 2019 Budget presented an opportunity for an overhaul and reform of the economy.
According to Idris, CAP also hopes that the government will relook the income tax imposed on middle-income earners in the country.
He said in develop countries, higher taxes were imposed on high-income earners.
“However, in our country, the taxes imposed on the middle-income and high-income earners were almost similar.
“CAP suggests that high-income earners are taxed higher while middle-income earners are taxed less to encourage savings,” he added.