Malaysia announced on Wednesday (The 1 st) that it will impose a luxury tax starting in May next year, with a tax rate of 5 to 10 percent, foreign media reported.

The goods involved include jewelry and watches. The specific implementation mechanism, types of goods and tax rates on luxury goods will be announced after being finalized and approved by the cabinet.

But Malaysian Prime Minister Anwar stressed that the government would not impose a luxury tax on tourists to boost local tourism.

With the economic slowdown weighing on government spending, Malaysia hopes to consolidate its fiscal position by taxing taxes on luxury goods and other new taxes and subsidy cuts.