The High Value Goods Tax (HVGT) will be implemented on May 1, 2024, says Datuk Seri Anwar Ibrahim.
“At this juncture, the Finance Ministry is in the final stages of finalising the policy and legal aspects of taxing high-value goods,” the Prime Minister said in a written parliamentary reply dated Nov 1.
Anwar, who is also Finance Minister, said the drafting of the policies and laws has taken into account the inputs received from various stakeholders through engagements through the Finance Ministry and the Customs Department.
During the tabling of Budget 2024 on Oct 13, Anwar announced that the government would introduce HVGT for luxury items at the rate of between 5% and 10%.
First tabled in the revised Budget 2023 in February, Anwar, who is also the Finance Minister, said the move was to increase the country’s tax base by imposing taxes on those who had the means.
The tax was previously known as the luxury tax.
Anwar was responding to a question by Chong Zhemin (PH-Kampar) on when the tax will be implemented and its mechanism. – The Star