Govt scraps plan to impose luxury goods tax

The Star

The government has decided not to proceed with its implementation of the proposed high-value goods tax (HVGT), says Datuk Seri Anwar Ibrahim. The Prime Minister said however, the underlying principle has been incorporated into the revised sales tax framework, with luxury and discretionary items now taxed at either 5% or 10%. Read more at https://tinyurl.com/5n6hfbn5  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

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00:00Prime Minister Datuk Sri Anwar Ibrahim told the Dewan Rakyat in a written parliamentary

00:06reply that the government had decided not to proceed with its implementation of the

00:10proposed high-value goods tax.

00:12Anwar said, however, the underlying principle has been incorporated into the revised sales

00:17tax framework, with luxury and discretionary items now taxed at either 5% or 10%.

00:23He said the newly implemented low-value goods tax, effective from January 1st last year,

00:28had brought in around 500 million ringgit in revenue this year.

00:32The luxury goods tax was initially slated to commence in May last year.

00:36Anwar said the government's latest review of the sales tax rate and expansion of the

00:40service tax scope, which came into effect on July 1st, is expected to increase national

00:44revenue by 5 billion ringgit this year and double that amount in 2026.

00:49He said the ongoing diesel subsidy rationalization has resulted in savings of up to 600 million

00:55ringgit a month for the federal government.

00:58Other fiscal reform measures have contributed to strengthening national revenue, including

01:02the implementation of the capital gains tax on unlisted shares.

01:07The government said it estimates revenue collection at around 800 million ringgit annually, but actual

01:13figures will only be confirmed after corporate taxpayers submit their annual income tax returns.

01:28So let's go ahead and see that.

01:35We'll be seeing a little bit more on the phone.

01:36So Game has been a little bit more on the phone.

01:38We'll be seeing a little bit more on the phone at the time.

01:39So we're seeing a little bit more on the phone.

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