KUALA LUMPUR – The high-value goods tax (HVGT) on luxury items may not be imposed on May 1 as originally scheduled, due to disagreements on the definition of such goods, The Edge reports.
Citing sources, the business paper said the government, retail industry and tax experts also cannot agree on the price range of the items to be taxed.
Consultations on the tax with stakeholders have been held but no outcome of these talks were reported, and notably, the bill for the tax was not tabled in the Parliament sitting that just ended yesterday.
Without a law on the HVGT, it cannot be implemented as scheduled on May 1, The Edge cited a tax consultant as saying.
The HVGT was announced in Budget 2024 with implementation slated for May 1 at a rate of between 5% to 10%.
As of February 29, the bill appeared to be on track, with the Finance Ministry in a parliamentary written reply saying the bill would be tabled in the current parliamentary session. The session was from February 27 till yesterday.
Parliament will reconvene on June 24 and sit until July 18.
The Finance Ministry also said that the luxury goods tax would earn the government RM700 million annually. – March 29, 2024