KUALA LUMPUR (March 18): The proposed high-value goods tax (HVGT) is still undergoing the final stages of policy development, said the Ministry of Finance (MOF), with less than two months left before the tax's scheduled implementation on May 1.
In a written parliamentary reply to Roslan Hashim (PN-Kulim Bandar Bharu) on Monday, MOF said several policies were being finalised, including identifying the types of goods subject to HVGT and establishing the threshold value for defining high-value goods.
"This policy will be carefully studied and determined to ensure it does not have an additional impact on low-income groups," the ministry said.
MOF, however, did not confirm if the new tax will still commence on May 1 as scheduled.
HVGT, previously referred to as the Luxury Goods Tax, was announced by Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim during the Budget 2024 presentation at Dewan Rakyat on Oct 13 last year, with tax rates ranging from 5% to 10%.
On Feb 29, MOF confirmed in a written parliamentary reply that the bill related to the proposed tax is slated to be presented during the ongoing Parliament session, which will conclude on March 27. The ministry also reiterated that if the bill is approved, the legislation is set to take effect on May 1.
The government anticipates an additional annual revenue of RM700 million from the proposed HVGT.
Last week, Tourism, Arts, and Culture Minister Datuk Seri Tiong King Sing urged MOF to promptly disclose details regarding the implementation of HVGT, particularly regarding the Tourist Refund Scheme. He said the tax should be implemented in a transparent and efficient manner.
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