First announced as luxury tax, Malaysians will soon face the newly-named High Value Goods Tax (HVGT) starting from May 1, 2024 according to prime minister Datuk Seri Anwar Ibrahim. The new tax, set to be imposed on luxury or big-ticket items, will have a rate of between 5% and 10% as announced at the tabling of Budget 2024.
However, beyond high-value jewellery and watches as mentioned by Anwar before, it appears the HVGT will also apply to private jets, yachts and luxury cars, as reported by The Star. The items and the thresholds were listed in a guideline provided by the finance ministry for the industries to give their feedback.
For now, it looks like jewellery over RM10,000, watches above RM20,000 and cars priced beyond RM200,000 will be subject to the new high-value tax of between 5% to 10%. It is not yet known if the so-called luxury cars will get an additional tax of 5%, 10% or anything in between.
Taking the base RM200k price, an extra 5% tax (assuming it’s imposed on the full amount) will mean the car will be RM10k more expensive to the buyer. If the HVGT is set to 10%, that’s RM20k. Likewise, a RM500k car will be costlier by RM25k at a 5% rate, or a full RM50k more at 10%. Though it’s all a straightforward percentage game, it sure sounds like it will affect the RM200k car buyer more, right?
It will also have more pronounced effects on car models that have variants straddling the tax threshold. Taking the Tesla Model 3 for instance, while the base RM189k SR would not be affected by the HVGT, the RM218k LR would have to be repriced to either RM229k (5%) or RM240k (10%) from May next year. And, working on the basis that tax will be applied to an item’s final price, if you tick a few option boxes even on the base model, that will tip it over the crucial threshold.
As it is, a few popular models already have long waiting lists that could stretch past the May 1 deadline, so this price hike may already apply to customers making a new booking now. Even for models without such long waiting times, will this impending tax cause another wave of rushed bookings like the SST tax holidays in the past few years?
It’s unlikely that the government will extend or absorb the tax difference past the implementation date like it did with the previous SST holidays, seeing that the HVGT is meant to “tax those who had the means.”
Also, would this even apply to EVs, which are virtually sold tax-free here in Malaysia (apart from a 10% sales tax for CBU models)? What about grey import cars that have far more fluid pricing? Will discounting be more prevalent to bring prices below the threshold? Should we expect more cars to be priced at RM199,999 soon? Used cars macam mana? There are certainly plenty of questions that are yet to be answered.
“At this juncture, the finance ministry is finalising the policy and legal aspects of taxing high value goods. Any changes to tax policy will have to take into account the impacts on the economy and cost of living of the people,” said the PM in a written parliamentary reply dated Nov 1.
What do you think of this, folks? Is it fair for the government to tax cars specifically above RM200k, and is that even the right threshold to begin with? Discuss below.
In any case, if you’re looking to buy a premium car anytime soon, PACE 2023 this weekend at the Setia City Convention Centre is the place to be for the best year-end offers and perhaps, your last chance to avoid paying the new High Value Goods Tax.
Looking to sell your car? Sell it with Carro.
Tax the rich n subsidi the poors. Kudos PH govt
200k is not a rich man car, these days it is the price of a Honda Accord or Toyota Camry which is midrange for the M40 buyers. Hardly a luxury item.
So once more PH biggest supporter & voter group got shafted with higher prices but seeing no benefits for them. Well you reap what you sow.
Deswai those lebai’s buying alphard in droves,
It’s not like the Accord or Camry is that popular anymore. It’s all about the SUV these days. I don’t have any issues with the HVGT they want to implement. If you can pay over 200k for a car then certainly you can pay the tax and all its associated cost
So funny to see many brain dead OKU that thought punishing successful people is a good thing. No wonder Malaysia is so poor. All the rich running away. If I was ,minister I will punish the poor and the lazy instead. Sohai.
This guy should be the next PM! 1 vote for you!
Long live hammer and sickle.
Anwar menang rakyat senang
All Evs 100k and above..impose this tax,PMX.How on earth u can remove all EV duties for the rich but impose duties on the Axia or bezza?
No wonder,the green states voted for greenies cos most of their population is B40 and mid M40.
Dont reward the rich with tax free Evs in the name of lesser carbon emission,while at the same time TNB is burning more coal to provide charger power.
Okay. Impose this and get rid of AP system. Can ah?
AP system is alwiz part of DEB polisi yang diwujudkan bagi membantu Bumiputera terutama orang Melayu.. we must all protek this system at all costs.
One best example is PEKEMA Persatuan Pengimpot dan Peniaga Kenderaan Melayu Malaysia… Have developed many successful usahawan Bumiputera.
With Tesla now able to direct import & sell there is no more this issue of AP lah, DEB lah, NEP lah.
Tongkat, walking stick, crutches ,wheelchairs you name it. But fishing rods tamau la sebab we want you to feed us not teach us to fish
Jangan ungkit isu kaum la woi
Memag kurang ajar Peppa ni. Hari hari anti melayu dan anti cina. Kea report kepada Paul Tan.
o0o
It is good and at correct threshold. Whoever can spend 200k for car regardless run by nitro, diesel, petrol, hybrid, or EV, should be able to afford to pay higher tax.
Dont take it as a penalty. The tax is going to be used for good purpose such as road repairs and etc.
Higher weight from comfortable cars or EV also leads to faster deterioration of road conditions. It will be better if 400k cars can impose even higher tax.
What good causes? Make everyone pay income tax. The B40 don’t and that is unfair.
Kita pun nak bayar cukai tapi gaji x tinggi. Bayar pakai bulu kaki bulih?
you do know that price of the car dont determine its weight a 2 mil porsche gt3 is lighter then a honda civic. so from what you say everyone get a gt3 the road wont deteriorate as fast cause is lighter which mean govermoent will spend less money on their ‘good’ cause whcih equal to people paying less tax. this my 100iq solution to solve malaysia tax issue pls vote for me as next minister lol
T20 folks will be fuming.
Tak lah…kita duit banyak tatau nak buat apa. Apa la sangat 5% 10% tu….
Better place your Tesla orders now or stick to just the no-frills variant later on.
All of them are no-frills variant
Good finally some logic there. Tax the rich and stop burdening the lower income people. Those who buy these luxury items probably wont even feel the additional heat lol
Only idiots like you make this type of comments. Those who are capable are paying so much of personal income tax, and it is not fair to ask more from paying citizens. It’s leeches like you that don’t deserve subsidies. Only know how to live off those who pay taxes.
Remember this bob, the rich ain’t dumb. They’re mostly businessmen and will pass on their higher cost of living to the consumers. The lower income group will continue to suffer and the vicious cycle continues
First have more choices for cars below 200K by removing AP. This new tax looks like another OKU policy to make money FROM rakyat instead of making money FOR rakyat. Sohai low IQ
It is in the private sector where the rakyat make money. The public sector, on the other hand, has to provide services for the nation & the rakyat like infrastructure, education, health care, law enforcement, military defence, which are the reasons for taxation. If the public sector is expected to make money for the rakyat, would that mean the rakyat don’t have to work for a living? If so, the country would turn into a nation of lazy spoon fed beggars, which is detrimental to the economy.
In September, this MASAMI character posted a comment, telling off another PT reader to use hydrogen as laughing gas when in truth, laughing gas doesn’t contain any hydrogen atoms. This proves that MASAMI is indeed of the same sohai low IQ OKU personality which he likes to accuse the others of being.
Soon C-Segment cars is going to reach RM200K and it will be labelled as Luxury car?
Buy Proton and Perodua la..
You tell me which car above RM200k is meant for M40 and B40?
B40 should walk, take the bus or ride a bike.
If they can afford that kind of value, I don’t think they care to pay additional tax. They have so much tax breaks when they declare their income tax.
Correct.. The rich has been using tax breaks for new car purchase.. If this luxury tax is being imposed, at least the government can recover additional revenue from it.
A person who can afford an above RM200K but below RM400k car is normally a T20, but what is the so much tax break are you talking about other than what everyone gets? I think you’re taking about T1 who are business people, 99% of T20 are just salaryman.
CBU cars already tax 100%, not enuf? Yachts, Jewelry, Jets, people will just buy in another country. Poor country gov acting like it’s a rich one.
bila mau remove itu AP. sembang kuat. menang today esok harga kerata murah
now getting more complicated.
tax byk tapi waste our money on silly programs like PLKN 3.0, syabas
Mesia nak latih askar hantar Palestine lawan Zionist
Smart T20s and E0.1s will buy car, yacht, watch etc in Langkawi & Labuan, store them on the island and bring the item over to the mainland when the time is up.
Smarter T20 will use their company to buy the cars and yachts instead. Tax paid by the company, no need to come out a single cent
Here I though Camry is a family car for M40 group that have the capability + 9 years loan, now it’s a luxury item.
The logic is flawed, there are items that are luxury and some are not, even it is at the same category and same price point.
A Merc A200 @ RM239k is a luxury car (Because it’s a Merc, use by ppl to show-off, start breaking down after first 3 years, change oil & filter cost 4 digits & it doesn’t hold it resale value).
A Toyota Camry @ RM220k is NOT luxury car (Because it’s a Toyota, a family car, bullet proof quality, normal oil change service cost few hundreds and holds it resale value)
Other than increasing tax, how about cutting spending, like our bloated public service sector.
Too risky. Biggest voter base. Can’t offend them.
No lah. These sectors vote regressive movement
Now,we know Israel has 300,000 dudes circling Gaza,hammering the poor Gazans mercilessly.
Msia has 1.3 juta civil servants out of say 35 juta population.Thats the size of Xi Xin Ping’s Peoples Liberation Army…oh my gaud.
In other words..our civil service if conscripted into the army ,can match China man to man ,minus the nukes.
If not mistaken,we have the highest no of civil servants percentage wise ,in the Guinness Book Of World Records.
PMX, we not only need to trim,but get rid of the deadwood and those who should give more deserving rakyat the posts.
200k already considered luxury?
good taxation towards the rich but please make good use of the collected tax, not just spoon fed the poor else forever cannot get rid of the poor
Do you have a nagging pest problem? We’re here to help!
@KC your logic is very short sighted like most OKU ministers in Malaysia. So are you saying its a good idea to punish capable and successful people for doing a good job in creating jobs and improving Malaysia’s economy instead of punishing the losers that don’t pay tax and don’t do anything useful for the country? Lol. Sohai. No wonder Malaysia so poor. We have OKU running the country. We should in stead encourage more people to build big business in Malaysia instead of punishing them for a job well done.
It’ll only get worst because the poor multiply like rats and spread faster than covid
the extra tax money will be used for PLKN programme, cronies that got the contract earlier is screaming for continue contract.
Totally not fair because cars have their own tax bracket im MY, imposing additional tax on top of it will bring rage to the buyer, regardless they can afford or not, can afford does not mean can spend more
The T20s are not bother to pay higher tax,they can afford it. The problems lies in M40 who pretend to be T20. M40 income, T20 lifestyle. Many are in this group. Recently a Honda City owner said ‘life is hard’ for him since he has to pay RM420 for his car 20k km service! So live by your mean and enjoy life, not pretending to be what you are not.
That’s Axia owner complaining, not City owner lol…can you please get your fact right before posting ?
Now we all know who is the City owner..
The city owner must be from the protected species but can’t blame him coz his future mother in law demanded him to drive jenama H or else cannot marry her daughter
I think this is a wrong implementation.
The value of the car is not rm200k to begin with. is probably like RM120k car with 80k of taxes and duties to make it Rm200k . So another 10% on the final amount ? Would mean you apply taxes on taxes. That’s grossly unfair and a stupid mechanism. They tax it to make it 200k, then tax somemore? Along kah?
Aduh…. Tiap tukar gomen tambah jenis tax… Apalah buat pening kepala. How about adjusting income tax of the people. More importantly, collect taxes from those who sourced their income from illegal market and not forgetting those pisang goreng nasi lemak seller by roadside whose income is much higher than salarymen… Hahaha.. Malaysia is home to hell lot of illegal businesses (money laundering, illegal betting, online casinos, scammers, alcohol smuggling, untraceble transactions, under table, etc…)…. Tax those people lah…. (i know maybe should just eliminate these people but Malaysia forever bolehlah as we are kind towards each other that imposing laws are just useless)… I see syndicates smuggling alcohols out of duty free zones from JB everyday despite reporting to customs department for a year. Funny thing is customs checkpoint always empty and not operating 24 hours….
Why should the govt collect tax from a person who earns income from an illegal activity? Doesn’t that mean condoning this person to commit a criminal offence? By right, this person should be arrested by law enforcement authorities & prosecuted in court of law. Illegal businesses are not legitimate sources of income & could not be legally taxed in the 1st place.
Pls listen u moron in PH ….to help rakyat, tax the cars above RM200k and implement zero tax for cars below RM100k. Then rakyat will be happy and feels that its more fair if YOU really want to help the rakyat. maintain status quo for the RM100k – RM200k range.