Following a Dewan Rakyat sitting on July 29, 2025, it has been revealed that the government has officially scrapped its plan to impose the High Value Goods Tax (HVGT), over a year after it was first announced in Budget 2024.
The government originally set May 1, 2024 to implement the HVGT but this was put on hold after pushback from industry players. The proposed tax rate would have been between 5% and 10% tax and affect cars above RM200,000, watches over RM20,000 and jewellery beyond RM10,000 – it was projected to bring in RM700 million to the government.
In a written parliamentary reply on Tuesday, the ministry of finance (MoF) confirmed that the government has decided not to proceed with the HVGT, previously known as the luxury goods tax. “However, the elements of the HVGT have been incorporated into the revamped sales tax regime, where luxury and discretionary items are now taxed at rates of 5% or 10%,” the MOF stated.
The reply was in response to a query from Datuk Shamshulkahar Mohd Deli, who had asked about the projected increase in national revenue from the government’s fiscal reforms. These reforms included the proposed HVGT, a digital goods tax (DGT), a capital gains tax (CGT), a low-value goods tax (LVGT) as well as the expansion of the sales and service tax (SST).
While the HVGT is no more, the finance ministry anticipates government revenue to increase through other new and expanded tax measures. This includes the broadened scope of the SST that came into effect on July 1, 2025, which is expected to bring in an additional RM5 billion this year, with this figure doubling to RM10 billion by 2026.
Meanwhile, the CGT that came into effect on March 1, 2024 is projected to generate approximately RM800 million annually, while the LVGT that start earlier on January 1, 2024 generated approximately RM500 million in revenue in 2024.
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Lol obviously gosoking the rich again
PH has to go back taking care of their voter base; the T20 & M40 after kena rejected by B40s calling for Turun Anwar. Now you know why RON95 subsidy cut was canceled, OPR was dropped, stop toll hikes, and this HVGT did not go thru.
Plain BS Gomen with lalang policies blowing whichever way when its unpopular.
1.99 petrol price to lobby the poor, hvgt to lobby the rich, and we are back to square one
So… not tax the rich more but tax all and tax more is the answer?
Really disappointed with the gomen.
Woohoo..orang kaya rejoice
Syukur, nanti 2nd hand luxury car also cheaper.
Anwar menang rakyat senang
RM500 billion of “potential investments” and nothing materialized. Madanon’s economic plan – squeeze the rakyat so that the govt has budget to pay for bloated expenses that benefit their cronies.
Yay! got time to change car later.
Just b4 the Turun rally,PMX backtracked…reduce Ron 95 by 6sen,defer toll increase,give wasteful Sept 15 holiday,n Rm100 angpow.
Even our cucu knows all these are sweeteners to pacify a hostile covid stricken rakyat.
PMX is spending billions on these while trying to push new taxes.
While not cutting a bloated civil workforce,with rising pensions,he is doing a “hit n run” or “touch n Go” strategy.
If the Kajang dude is not a bandit,he could do a better job.
Just wait for the next PKR leader to replace Ahwarkor.
As for the greenies…oh no way…for the next 100 years.