The implementation of the High Value Goods Tax (HVGT) is still on hold, the finance ministry told the Dewan Rakyat today, according to The Star.
The ministry added that the government is prioritising other fiscal reforms implemented last year – including the Low Value Goods Tax and targeted diesel subsidies – and that policies and legislation for any new taxes, HVGT included, must be drafted carefully.
“However, the government will continue studying the feasibility and approach of imposing a sales tax on high-value goods as among the elements in reviewing the rates and scope of the sales and service tax, as proposed under Budget 2025,” it said in a written parliamentary reply to Machang MP Wan Ahmad Fayshal Wan Ahmad Kamal, who asked about the status of the HVGT.
“This will allow a more holistic and efficient approach which upholds the principles of social justice and economics as well as the people’s welfare,” it added.
First announced in Budget 2024, the luxury tax was supposed to be implemented in May 2024, but was put on hold in March that year. The government was working on fine-tuning the policies and legal frameworks, but it was also reported that there were disagreements over what constituted ‘high-value goods’, the price threshold and the amount to be taxed.
The original plan was to slap a 5%-10% tax on cars above RM200,000, watches over RM20,000 and jewellery beyond RM10,000. What are your thoughts?
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First, they charge high tariff to cars to make it much more expensive. Now they want to charge HVGT because the car is expensive due to the high tariff?
make it make sense
PH is subsidising the rich via tax cuts while punishing the B40s with petrol subsidy removal. This useless gomen is only for the rich & powerful. Is this what the rakyat voted?
B40 did not vote them. They should take care the people that voted them.
Bring the business and value to Malaysia. Not to steal from your own rakyat. This is the sign of failure government.
PH Gomen have already failed many times over.