KUALA LUMPUR: The implementation of the High Value Goods Tax (HVGT) is still on hold, the Dewan Rakyat was told.
The Finance Ministry said this is due to the government prioritising other fiscal reforms implemented last year, including the Low Value Goods Tax and targeted diesel subsidies.
"However, the government will continue studying the feasibility and approach of imposing a sales tax on high-value goods as among the elements in reviewing the rates and scope of the sales and service tax, as proposed under Budget 2025," it said in a written parliamentary reply on Thursday (Feb 27).
The ministry also said policies and legislation for any new taxes must be drafted carefully, noting that the HVGT is no exception.
"This will allow a more holistic and efficient approach which upholds the principles of social justice and economics as well as the people’s welfare," it added.
The response was to a question by Wan Ahmad Fayshal Wan Ahmad Kamal (PN-Machang) regarding the status of the HVGT.
The HVGT was initially slated to commence on May 1, 2024.
