First announced as luxury tax, Malaysians will soon face the newly-named High Value Goods Tax (HVGT) starting from May 1, 2024 according to prime minister Datuk Seri Anwar Ibrahim. The new tax, set to be imposed on luxury or big-ticket items, will have a rate of between 5% and 10% as announced at the tabling of Budget 2024.
However, beyond high-value jewellery and watches as mentioned by Anwar before, it appears the HVGT will also apply to private jets, yachts and luxury cars as reported by The Star. A guideline provided by the Finance Ministry for the industries to give their feedback on even provides thresholds for items to be taxed.
For now, it looks like jewellery over RM10,000, watches above RM20,000 and cars priced beyond RM200,000 will be subject to the new high-value tax of between 5% to 10%. It is not yet known if the so-called luxury cars will get an additional tax of 5%, 10% or anything in between.
“At this juncture, the Finance Ministry is finalising the policy and legal aspects of taxing high value goods. Any changes to tax policy will have to take into account the impacts on the economy and cost of living of the people,” said the PM in a written parliamentary reply dated Nov 1.
What do you think of this, folks? Is it fair for the government to tax cars specifically above RM200k, and is that even the right threshold to begin with? Discuss below.
In any case, if you’re looking to buy a premium car anytime soon, PACE 2023 this weekend at the Setia City Convention Centre is the place to be for the best year-end offers and perhaps, your last chance to avoid paying the new High Value Goods Tax.
The post High Value Goods Tax to start in May 2024: cars above RM200k to get another 5% to 10% tax in Malaysia? appeared first on Paul Tan's Automotive News.
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