PETALING JAYA: The Finance Ministry has recently confirmed the implementation of the High Value Goods Tax, formerly known as the Luxury Goods Tax to commence next year in May.
Malay Mail reported that the tax policy and legislation are currently in the process of being finalised by the Finance Ministry.
“The policy determination process and the drafting of the legislation have taken into account input received from various parties through engagement sessions conducted by the ministry and the Customs Department,
“The implementation mechanism, types of goods and high-value goods tax rates will be announced as soon as the matter is finalised and approved by the Cabinet,” the ministry stated in a written parliamentary reply yesterday
This was in response to Chong Zhemin’s (PH-Kampar) question earlier regarding the implementation of the High Value Goods Tax in the near future and its implementation method.
During the Budget 2024 tabling last month, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim proposed that luxury goods such as high end watches and jewellery to be taxed at 5 to 10 per cent.
However, former Prime Minister Datuk Seri Ismail Sabri Yaakob expressed his skepticism towards Anwar’s proposal – warning that the tax would deter foreign tourists from shopping in Malaysia.
