KUALA LUMPUR: What is the status of the High-Value Goods Tax (HVGT), questions Datuk Seri Dr Wee Ka Siong (Barisan Nasional-Ayer Hitam).
After reviewing the contents of the Supply Bill 2025, Dr Wee said he was left wondering about the HVGT’s status.
He noted that Prime Minister Datuk Seri Anwar Ibrahim also touched on the HVGT’s implementation when tabling the Supply Bill 2024, adding that a written parliamentary reply from the Finance Ministry to him earlier this year said that it would be delayed to a later date.
“Wouldn’t introducing this tax be something reasonable and able to contribute up to RM1bil in revenue to the government?
“What is holding back the government from implementing the HVGT?” he asked when debating the Supply Bill 2025 in the Dewan Rakyat on Tuesday (Oct 22).
Dr Wee also questioned why the threshold value of high-value goods has yet to be defined.
“It’s been almost a year, but there is still no news about the HVGT,” he said.
The HVGT was initially set to be implemented on May 1 this year.
On the Low-Value Goods Tax, Dr Wee questioned how much revenue was generated and how it stimulated the economy compared to the HVGT.
Separately, Dr Wee said the government cannot impose raised excise duties on sugar-sweetened beverages while also subsiding sugar manufacturers.
“It’s akin to giving vitamins and poison at the same time. The government cannot do two things at the same time.
“We must choose one,” he said, referring to the announcement that excise duties on sugar-sweetened beverages will be raised by 40 sen per litre starting Jan 1, 2025.
On raising the minimum wage to RM1,700, Dr Wee said it would also impact the salary scales of workers at all levels.
“At the same time, production costs will increase, and profits will go down.
“There is also the Progressive Wage Policy, which will be implemented next year. How will the government aid SMEs here?” he asked.
