KUALA LUMPUR, Nov 2 — The High-Value Goods Tax, previously known as the Luxury Goods Tax will kick in starting from May 1 next year, the Finance Ministry headed by Prime Minister Datuk Seri Anwar Ibrahim said.
Currently the Finance Ministry is in the final stages of finalising the tax policy and legislation.
“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.
The ministry was responding to Kampar MP Chong Zhemin who asked the government if the luxury goods tax will be implemented in the near future and the method of implementation.
Anwar had proposed a 5 to 10 per cent tax on luxury goods such as jewellery and high end watches during the tabling of Budget 2024 last month.
This proposal was met with scepticism from former prime minister Datuk Seri Ismail Sabri Yaakob, who warned that the luxury tax could potentially discourage foreign tourists from visiting Malaysia for shopping purposes.