Finance ministry still fine-tuning luxury goods tax

 

The government had earlier proposed a tax of 5%-10% on luxury items, but the finance ministry now says discussions are still going on to finalise the details. (Bernama pic)

PETALING JAYA: The government deferred the tabling of a bill on a luxury goods tax to enable fine-tuning on the scope of goods and associated thresholds, the finance ministry said today.

The ministry said discussions were still going on to finalise details on the high value goods tax, to ensure the effectiveness of the tax without adversely affecting the people.

The statement said the government was seeking to strike a balance between improving the country’s fiscal position and avoiding adding undue burden on the public.

The ministry’s statement comes two days after The Edge reported that there were unresolved disagreements over the criteria and definition of high-value goods, and because the price range of taxable items had not been set.

The bill was not tabled in the Dewan Rakyat this week. It had previously been expected to come into force on May 1. The Dewan Rakyat has adjourned until June 24.

The tax was originally announced in the revised 2023 budget, with further details announced a year later. The government proposed a tax of 5% to 10% on luxury items, which was expected to generate RM700 million in annual revenue. - FMT