KUCHING, Nov 2: The High-Value Goods Tax, formerly known as the Luxury Goods Tax, will take effect on May 1 next year, the Finance Ministry led by Prime Minister Dato Seri Anwar Ibrahim announced.
The Finance Ministry is currently in the final stages of finalising tax policy and legislation, MalayMail reported.
“The process of policy setting and legislation drafting has taken into account input received from various parties through engagement sessions conducted by the Finance 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 said in a written parliamentary reply yesterday, as quoted by the news outlet.
The ministry was responding to Kampar MP Chong Zhemin, who asked the government if the luxury goods tax would be implemented soon and how it would be implemented.
During the tabling of the Budget 2024 last month, Anwar proposed a 5 to 10 per cent tax on luxury items such as jewellery and high-end watches.
MalayMail reported that the proposal was met with scepticism by former Prime Minister Datuk Seri Ismail Sabri Yaakob, who expressed concern that the luxury tax could discourage foreign tourists from visiting Malaysia for shopping purposes. — DayakDaily
