Anwar: Luxury tax kicks off on May 1, details being finalised

The new High-Value Goods Tax (HVGT) will take effect on May 1 next year, said Finance Minister Anwar Ibrahim.

In a written reply to Chong Zhemin (Pakatan Harapan-Kampar), Anwar said his ministry was in the final policy stages of implementing the new tax, which will require new laws to be made.

“The mechanism, the goods involved, and the tax rate will be announced once the matter is finalised by the cabinet,” said Anwar.

The new HVGT was announced by Prime Minister Anwar during his Budget 2024 speech. At the time, he said the tax would cover jewellery and watches, among others.

Anwar added that tourists will be able to obtain a refund on the tax.

According to The Star on Oct 27, citing sources, the tax was expected to be imposed on expensive items such as private jets, yachts, jewellery, and luxury cars.

The source claimed that the tax would be applied to cars sold above RM200,000, watches above RM20,000, and jewellery priced above RM10,000.

These items and thresholds, said the source, are listed in documents meant to solicit feedback from the industries.

Meanwhile, Anwar told Zulkafperi Hanapi (Perikatan Nasional-Tanjung Karang) that his administration has yet to propose the reinstatement of the goods and services tax (GST).

“Any change in taxation policies will take into account the state of the economy and cost-of-living issues.

“The government will always monitor the state of the economy and suggest fiscal measures that are suitable for the short and medium term,” said Anwar in his written reply.

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