High Value Goods Tax being fine-tuned – HGVT or Luxury Tax for cars above RM200k soon in Malaysia

High Value Goods Tax being fine-tuned – HGVT or Luxury Tax for cars above RM200k soon in Malaysia

Remember the High Value Goods Tax (HVGT)? It was announced during the tabling of Budget 2024 last year and set to be implemented on May 1 this year, but was put on hold as the ministry of finance postponed bringing the bill to parliament. According to The Star, the said ministry is currently fine-tuning the policies and legal frameworks.

In a written reply to Ayer Hitam MP Wee Ka Siong’s enquiry regarding HVGT’s status, the ministry said the reworking of the bill is meant to ensure the tax is being implemented in an orderly and transparent fashion.

The ministry added that the implementation of the tax will also align with “international practices and tax principles” without impacting economic activities and the rakyat‘s “wellness”. The new date of HVGT’s implementation will be decided by the cabinet.

It was previously reported that the bill was delayed due to disagreements over the definition of “high-value goods” and the price range of items that would be subject to the tax. Back then, the ministry said it was the final stage of refining certain matters related to the tax structure, especially the type of goods categorised as “high-value” as well as the threshold determination and tax rates.

The government had initially planned to exact HVGT on jewellery over RM10,000, watches above RM20,000 and cars priced beyond RM200,000, at a rate of between five and ten per cent.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Ben Yap on Jul 11, 2024 at 10:36 am

    the highest car that one can buy without paying for the tax will be a C-Segment.

    Like or Dislike: Thumb up 17 Thumb down 0
  • Curious on Jul 11, 2024 at 11:23 am

    why tax (HVGT) over tax (SST) over tax (excise duty) etc.?

    Like or Dislike: Thumb up 27 Thumb down 2
  • DonkeyKong on Jul 11, 2024 at 11:53 am

    Foreign investment and increased economic output to raise overall govt revenue = ❌

    Tax the rakyat more and more to raise govt revenue = ✅

    Formula tengah berjalanlah ni, bangang

    Well-loved. Like or Dislike: Thumb up 56 Thumb down 2
    • Will they actually do it? Doubtful as they cancel it the last time. After Sg Bakap its clear the B40 votes are gone, the M40 are turning against them, and their only hope left is the T20 votes. Are they willing to lose all segments popularity by irking the T20 as well?

      Like or Dislike: Thumb up 18 Thumb down 0
      • hazri on Jul 11, 2024 at 8:59 pm

        by your statement, so it is true that gov dont protect t20 right? sg bakap cant be real indicator, PN won by 4k majority and 14k voters dont come to vote. we should see at least in damansara parliment if t20 really dont support gov or not.

        Like or Dislike: Thumb up 2 Thumb down 1
      • yourmom on Jul 15, 2024 at 2:26 pm

        nah mostly all the subsidies exclude T20. these T20 people will be the most not beneficial to the government subsidies/help.

        Like or Dislike: Thumb up 0 Thumb down 0
  • disgustedbyHVGToncars on Jul 11, 2024 at 11:59 am

    Malaysia is already one of the priciest markets to own a car. Now our govt wants to make it even pricier. What is wrong with these fellas? Time to change govt?

    Like or Dislike: Thumb up 48 Thumb down 3
    • Bob_B78 on Jul 11, 2024 at 5:26 pm

      Change gov no diff at all. U think after remove subsidi for diesel and implement high value tax, the new gov will reimplement subsidi and remove the tax? Passed and present gov all hipokrits. Pandai complain tak boleh buat kerja

      Like or Dislike: Thumb up 22 Thumb down 4
  • Bieight8 on Jul 11, 2024 at 12:13 pm

    Tax car above 1m

    Like or Dislike: Thumb up 18 Thumb down 1
  • Nurul Izzah on Jul 11, 2024 at 12:37 pm

    Anwar menang rakyat senang

    Like or Dislike: Thumb up 14 Thumb down 2
  • seancorr on Jul 11, 2024 at 1:59 pm

    Soon CRV will be considered luxury car in Malaysia

    Like or Dislike: Thumb up 17 Thumb down 0
    • hazri on Jul 11, 2024 at 9:00 pm

      just buy the low spec one. or wait for honda giving cash rebate.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Ah Chong on Jul 11, 2024 at 2:36 pm

    I see so many complains so here’s an appropriate question for the Rakyat:

    What are you willing to do for the country to help it improve?

    Me, I’m willing to lose the fuel subsidy, buy a scooter, and commute on said scooter (and endure the weather) though I do wish there’s more safer motorcycle lanes. It would cost government less to build motorcycle lanes rather than widen the road for more cars.

    Like or Dislike: Thumb up 9 Thumb down 15
    • Masakroti on Jul 12, 2024 at 1:35 am

      Sacrifice so the government can become more bloated and corrupt? No thanks.
      How many layers of tax they want? 99% tax ? Idiots

      Like or Dislike: Thumb up 1 Thumb down 1
      • Ah Chong on Jul 13, 2024 at 6:56 pm

        So the answer I get from you is: “I’m not going to do anything. I’m entitled to good things without working for it because I believe I’m righteous”?

        You can say that you know. It’s my opinion that many Malaysians only know how to complain, instead of find ways to thrive in a bad situation.

        Imagine 1 person fight hard and clean for 10 years, and one person complain 10 years. 10 years later government might be just as bad, but the person who fought for 10 years would have been much more ahead in life than the one who only know to complain.

        Like or Dislike: Thumb up 1 Thumb down 0
    • Propaganda sacker. Spend your gf and mom as well then.

      Like or Dislike: Thumb up 1 Thumb down 0
  • dong Gor on Jul 11, 2024 at 2:55 pm

    first remove the excise duty, then most cars the regular rakyat drive will be well below 200k!

    Like or Dislike: Thumb up 15 Thumb down 1
  • Car prices are already stupid high, good luck selling new cars after this.

    Like or Dislike: Thumb up 13 Thumb down 1
  • Unbelievable on Jul 11, 2024 at 3:22 pm

    Car prices here are already one of the highest in the world. We are all paying luxury taxes for most cars. What rubbish is the govt talking about?

    Like or Dislike: Thumb up 20 Thumb down 0
  • Next election, change the government

    Like or Dislike: Thumb up 16 Thumb down 2
    • hazri on Jul 11, 2024 at 9:06 pm

      you want a gov who dont have manifesto because dont know how to, dont give you promises because they dont know how to fulfill the promises, and dont know to do the job, aka autopilot gov? really? you really like gov with no telur, minyak masak kena seludup?

      Like or Dislike: Thumb up 2 Thumb down 2
  • fudgemesideways on Jul 11, 2024 at 3:51 pm

    If you gonna impose such tax for car above Rm200k, then you should let EVs be priced below RM100k so rakyat b40 have more choices.

    Like or Dislike: Thumb up 17 Thumb down 1
  • Ahbeng on Jul 11, 2024 at 8:22 pm

    Why la use tesla pic…..why not use bmw or porsche taycan pic?

    Paultan readers just love tesla ya.

    Like or Dislike: Thumb up 13 Thumb down 1
  • Policy Bodoh on Jul 13, 2024 at 10:23 am

    Other country reduce car tax to have more beutiful cars on the road so the country will have a good image but our menteri OKU is doing the opposite. They want more kereta buruk on the road to make malaysia look poor

    Like or Dislike: Thumb up 1 Thumb down 0
  • Bossku on Jul 13, 2024 at 5:14 pm

    Some people talk politics macam experts here! T20 all belong to 1 type of race meh?? B40 support gone becos this group all belong to another type of race, so garmen will lose next GE? No way one lah…current garmen will out live certain ex politician!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Neo Belalang on Jul 13, 2024 at 9:31 pm

    Better GST than this high value goods taxes. Cars already massively taxed.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Confused on Jul 16, 2024 at 10:50 am

    I tot last time there were talks about fuel subsidy removal if implemented, taxes on cars to be adjusted lower like other countries?

    Seems like everything also increase….

    Like or Dislike: Thumb up 0 Thumb down 0
  • aismen on Jul 17, 2024 at 6:13 pm

    One step closer to India-level tax.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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