KUALA LUMPUR: The implementation of the High-Value Goods Tax (HVGT) has been delayed due to the Finance Ministry's postponement in presenting the bill to Parliament.
The tax, previously known as the Luxury Goods Tax, was slated to be tabled in the just-concluded parliamentary session, with the proposed legislation set to take effect on May 1, pending approval.
However, the Dewan Rakyat will reconvene only from June 24 to July 18.
The bill was first announced in the revised 2023 Budget tabled in February last year. The tax is expected to range from five to 10 per cent.
The government aims to generate an annual tax revenue of RM700 million by implementing this tax.
'The Edge', quoting a source, said the delay in the bill was due to disagreements over the definition of "high-value goods" and the price range of items subject to the tax, despite dialogues and consultations with retail industry players and tax professionals.
"There were some consultations and discussions, but there has been no progress following that," the source said.
On March 18, the Finance Ministry said it was finalising policies regarding the HVGT.
Through a written reply, the ministry said it would study the policies and ensure they did not affect the low-income group.
However, Malaysia Retailers Association president Datuk Andrew Lim said the HGVT would only harm the tourism industry since the country had to contend with competition from neighbouring countries.
Shopping by international tourists was a key revenue earner for the country, accounting for 33 per cent of the RM86.1 billion in tourism receipts in 2019.
