How much annual revenue is Malaysia expecting from the High Value Goods Tax?

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Malaysia Anticipates RM700 Million Annually from High Value Goods Tax

The Malaysian government projects an annual revenue collection of RM700 million from the implementation of the High Value Goods Tax (HVGT). This tax measure is part of the government's strategy to broaden its revenue base through consumption taxes.
Proposed Implementation Timeline

The bill pertaining to the High Value Goods Tax has been formally proposed for tabling during the current parliamentary session. Should the legislation receive approval from Parliament, it is slated to come into effect on May 1, 2024. This proposed effective date allows for a structured rollout of the new tax framework.
Revenue Projection Details

The RM700 million annual revenue estimate is based on the anticipated impact of the HVGT on specific categories of goods. This projection was provided by the Ministry of Finance in response to parliamentary inquiries regarding the expected financial yield and the timeline for the tax's introduction.
Context of Consumption Tax Measures

The introduction of the HVGT follows the earlier implementation of the Low Value Goods Tax (LVGT) on January 1, 2024. The LVGT applies a 10 per cent sales tax to imported goods valued at RM500 or below. The Ministry of Finance indicated that the LVGT is expected to generate RM200 million in revenue during its first year and aims to mitigate price disparities between local and imported products, thereby supporting domestic manufacturers.

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How much annual revenue is Malaysia expecting from the High Value Goods Tax?

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