The Ministry of Finance (MOF) has said that it will begin implementing the high-value goods tax starting from 1 May 2024.  

“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 shared, adding that it is in the midst of finalising the policy and all the relevant details.

MOF further reassured that it had taken into account the feedback provided by various parties when drafting the policy and related legislations, especially those collected during the engagement sessions conducted by the ministry and the Royal Malaysian Customs Department.

For context, Prime Minister Datuk Seri Anwar Ibrahim – who is also the Finance Minister – had announced the high-value goods tax during the tabling of Budget 2024 in October 2023, stating that it will be set at a rate of 5% to 10%. Additionally, he said that these goods will include items like jewelleries and watches, based on its value threshold.

It is also worth mentioning that the high-value goods tax was previously proposed by Datuk Seri Anwar Ibrahim under the revised Budget 2023 as well, referred to then as the luxury goods tax, but it was not implemented. At that time, the prime minister said that some of the items that will be included are branded watches and fashion goods.

(Source: The Edge Malaysia)

• TAGS:
• Budget 2023 Re-Tabling
• Budget 2024
• High-Value Goods Tax
• Luxury Goods
• Luxury Goods Tax
• Royal Malaysian Customs Department