Details of high value goods tax being hammered out, says PM

 

Prime Minister Anwar Ibrahim said the government will review the policy on the high value goods tax to ensure that it does not affect the lower income group. (Bernama pic)

PETALING JAYA: The finance ministry is finalising several policies related to the high value goods tax (HVGT), including the type of items which would be levied.

The ministry is also looking at the price threshold that would determine a high value item, Prime Minister Anwar Ibrahim said.

“We will review this policy and ensure it would not affect the lower income group,” he said in a written parliamentary reply.

Anwar, who is also the finance minister, was responding to Roslan Hashim (PN-Kulim-Bandar Baharu), who wanted to know if the HVGT would be imposed on jewellery worth RM10,000 and how it would impact the M40 households and below.

He had previously said the HVGT would be set at between 5% and 10% when tabling the national budget last year.

Last month, Anwar also said the government was set to garner RM700 million annually from the tax, which was previously known as the luxury tax.

He said the tax, which is set to be implemented on May 1, would be applied to items such as jewellery and watches that exceeded a certain price threshold.

Earlier this month, former finance minister Lim Guan Eng called on the government to consider reviewing its newly introduced taxes, including the HVGT, to reduce the financial burden on the people and businesses.

Lim said the new taxes should be deferred until there was more favourable economic growth by the end of the year. - FMT