High value added tax kicked out

Prime Minister Anwar Ibrahim confirmed that the High-Value Goods Tax (HVGT) will not be implemented, but its concept has been integrated into the revised sales tax structure, applying 5% or 10% rates on luxury goods. Responding to a parliamentary query, Anwar outlined revenue impacts of various fiscal reforms, including:

• Sales Tax on Digital Services (SToDS): RM1.6 billion in 2024.
• Low-Value Goods Tax (LVG): RM500 million in 2024.
• Expanded SST: Expected to generate RM5 billion in 2024, rising to RM10 billion by 2026.
• Targeted diesel subsidies: Saving RM600 million monthly.
• Capital Gains Tax (CGT): In effect since March 1; revenue yet to be finalized.

The HVGT, once expected to bring in RM700 million, was postponed due to overlapping new reforms.

Tax the rich?

Business News