KUALA LUMPUR – The luxury goods tax is expected to be implemented on May 1, 2024 as the Finance Ministry is finalising its policy and legislation on the matter, said Prime Minister Datuk Seri Anwar Ibrahim.
In a written reply to Chong Zhemin (Kampar-PH), he said the tax rate, types of goods affected and the implementation mechanism will be announced once they are approved by the cabinet.
Anwar, who is also finance minister, added that the policy and legislation draft took into account input from various parties via engagement sessions conducted by the Finance Ministry and the Customs Department.
Meanwhile, the government has no plans to reintroduce the Goods and Services Tax (GST).
In another written reply, Anwar told Datuk Zulkafperi Hanapi (Tg Karang-PN) that any changes in taxation policies will have to take into account the effects on the economy and costs of living.
“The government is always monitoring the current economic situation and taking into consideration suitable fiscal measures for short- and medium-term needs.”
On October 13, Anwar in tabling the 2024 Budget announced that the government would enact new legislation to tax certain luxury goods, such as jewellery and watches, based on the threshold value of the goods.
He also said the government planned to increase the service tax rate to 8.0% from 6.0%, and this would not include services such as food and beverages and telecommunications.
“The government will also expand the scope of taxable services to include logistic services, brokerage, underwriting and karaoke.”
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