The Malaysian Insight

THERE is no goods and services tax (GST) exemption for private jets and yachts, said Second Finance Minister Johari Abdul Ghani.

He said investment policies prioritised economic growth.

“If people buy private jets, yachts, they have to pay GST,” he said in the Dewan Rakyat today. 

He was responding to a query from Wong Chen (PKR-Kelana Jaya) who wanted to know whether the purchase of private jets or yachts for private use was GST-exempted.

In Budget 2018, Prime Minister Najib Razak said the imports of big-ticket items, such as aircraft and ships by airlines and shipping companies, will also get GST relief. – November 13, 2017.

“I just want to get an explanation; if we buy a private jet or yacht for private use, like Jho Low, will it be exempted from GST? If it’s exempted, it is unacceptable,” Wong had said earlier. 

Johari later confirmed that the purchase of such things for private use would not be exempted from GST. 

He added that future aircraft purchases by Malaysia Airlines, Malindo and AirAsia would be exempted from GST. 

Jho Low is a Malaysian businessman and the beneficiary of numerous discretionary trust assets that the US Department of Justice allege were obtained from 1MDB funds.

The question of Interpol’s role in locating Low was first raised in in 2015. The US Department of Justice believes Low is the mastermind behind a scheme to siphon money from state investment fund 1MDB.  

His whereabouts are unknown.

On October 23, Deputy Prime Minister Ahmad Zahid Hamidi said Malaysian police had closed their investigation into the businessman, who is also wanted for investigations by other countries.