Just last month, Prime Minister Anwar Ibrahim has announced the budget for 2024. Following the budget, it was reported that a luxury goods tax, also known as High-Value Goods Tax was introduced. In the announcement, the tax was said to be implemented next year, as further discussions were needed.
Luxury goods tax to be implemented on 1 May 2024
According to local newspaper NST, in a written parliamentary reply, the Finance Ministry has announced that the High-Value Goods Tax will be implemented on May 1 next year (2024).
Other than that, the written reply also mentioned that the ministry is currently in its final stages of completing the tax policy and legislation.
Source: NST Online
“The policy determination and drafting of the legislation have taken into account, input received from various parties through engagement sessions conducted by the ministry and the Customs Department”, said the reply.
Prior to this, during the tabling of the 2024 budget, a five to ten percent tax rate was introduced and was said to be applied to items such as jewelry and watches. However, it’s worth noting that there were provisions for tourists to seek for a tax refund. Following the news, several MPs have urged for more details to be announced.
Source: Pexels. For illustration purposes only.
“Implementation mechanisms, tax rate and further details will be announced once the policy and legislation has been approved by the cabinet”, it said.
Stay tuned for more updates.
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