Malaysia to implement tax on high-value goods from May 1, 2024, says finance ministry

KUALA LUMPUR: Malaysia will implement a tax on high-value goods from May 1, 2024, its finance ministry said.

In a written response to parliament on Wednesday, the ministry said it was finalising the policy and will announce the tax mechanism, types of goods to be taxed and tax rates once approved by the cabinet.

Prime Minister Datuk Seri Anwar Ibrahim announced last month that a tax of 5% to 10% will be introduced for high-value goods, when tabling Malaysia's spending plan for 2024 in parliament. He did not specify the value of goods that would be subject to the tax.

According to informed officials, the high-value goods tax (HVGT) is expected to be imposed for big-ticket items such as luxury cars, private jets, yachts and jewellery.

The Star has also learned that there will also be thresholds for these items to be taxed such as only cars sold above RM200,000, watches priced more than RM20,000 and jewellery worth RM10,000 and above.

The tax on high-value goods was first mooted in the previous budget announcement.

The items and the thresholds were listed in a guideline provided by the Finance Ministry for the industries to give their feedback on, according to one official.

Malaysia hopes to bolster its fiscal position by introducing a tax on high-value goods, among other new taxes and subsidy cuts, as an economic slowdown strains government spending. — Reuters/The Star