High-Value Goods Tax
In the recent Malaysia Budget 2024, the Government announced to implementation High-Value Goods Tax (“HVGT”) on certain high-value goods. This is in line with Budget 2023 where the Government announced that it was considering implementing a Luxury Goods Tax targeting items such as luxury watches and fashion products.
The transition from the previous Luxury Goods Tax to HGVT allows for future expansion as it is not limited to luxury and branded goods only as it is reported that HVGT is expected to be imposed also on other big-ticket items such as private jets, yachts, and luxury cars.
It is proposed that luxury items will be subject to an HVGT with rates ranging from 5% to 10%. The tax rate will be imposed based on the threshold value of the goods. The HVGT will take effect from 1 May 2024 onwards.
