MAA to meet govt over rumours of high-value goods tax on luxury cars

Sunday 12 May 2024

KUALA LUMPUR (Jan 16): The Malaysian Automotive Association (MAA) is set to engage with the government soon over speculation that the high-value goods tax (HVGT) may be applied to luxury cars that are priced more than RM200,000.

At a press conference on Tuesday, MAA president Mohd Shamsor Mohd Zain acknowledged the necessity of implementing the HVGT but urged consideration given that the automotive industry is already heavily taxed.

"We are actually preparing our request to the government in terms of MAA's position on the HVGT. Let us have our dialogue first with the government, and you might receive some news after that," he said.

Shamsor said the dialogue would take place before the end of February, with the implementation of HVGT expected in May.

While presenting Budget 2024 last year, Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim announced that HVGT, formerly known as the luxury goods tax, would be set at 5% to 10%.

In a parliamentary reply, the Finance Ministry said it is in the final stages of finalising the HVGT policy and legislation, and that the tax is expected to be implemented on May 1.

On another note, Shamsor said the MAA is yet to finalise its recommendations on the road tax structure for electric vehicles (EVs) to be presented to the government.

"MAA is a member of the National Electric Vehicle Steering Committee (NEVSC), and the road tax structure of EV will be discussed there," he said.

The Finance Ministry has granted a three-year road tax exemption to EV users, from Jan 1, 2022, to Dec 31, 2025.

Transport Minister Anthony Loke had reportedly stated that a new road tax structure for EVs will be introduced only after the exemption period ends, to ensure that users are not unnecessarily burdened.

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