High Value Goods Tax Still On Hold Govt Prioritising Fiscal Reforms

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The implementation of the high-value goods tax has been put on hold since May last year after calls for more discussions on what it should cover. (Bernama pic)
PETALING JAYA: The implementation of the high-value goods tax (HVGT) is still on hold as the government needs to prioritise several newly-implemented fiscal reforms, says finance minister Anwar Ibrahim.
He said among key reforms the Treasury needed to prioritise included the 10% tax on imported low-value goods priced RM500 and below, as well as the targeted diesel subsidies.
“At this time, the implementation of the HVGT is still postponed,” he said in a written parliamentary reply.
Anwar, who is also the prime minister, however said Putrajaya would study the feasibility of imposing a sales tax on high-value goods as part of its revision of the sales and service tax’s rate and scope, as proposed in the 2025 budget.
“Policies and laws for any form of tax that the government wants to introduce must be carefully drafted and formulated, including the HVGT, so that the tax can be implemented in an orderly and efficient manner,” he added.
Anwar was replying to Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) who had asked about the government’s plans regarding the HVGT.
The tax had been slated to come into force on May 1, 2024. It was originally announced in the revised 2023 budget and further delayed one year later.
It aimed to impose a 5% to 10% tax on luxury items and was expected to generate an additional RM700 million in annual revenue.
However, specific details about the tax, including the criteria for taxable goods and the range of items it would cover, have been scant, with only jewellery and watches explicitly mentioned so far. - FMT

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