Malaysia to implement tax on high-value goods from May 1, 2024: finance ministry

MALAYSIA will implement a tax on high-value goods from May 1, 2024, its finance ministry said.

In a written response to parliament on Wednesday, the ministry said it was currently finalising the policy and will announce the tax mechanism, types of goods to be taxed and tax rates once approved by the cabinet.

Prime Minister Anwar Ibrahim announced last month that a tax of 5 per cent to 10 per cent will be introduced for high-value goods, when tabling Malaysia’s spending plan for 2024 in parliament. He did not specify the value of goods that would be subject to the tax.

The tax on high-value goods was first mooted in the previous budget announcement.

Malaysia hopes to bolster its fiscal position by introducing a tax on high-value goods, among other new taxes and subsidy cuts, as an economic slowdown strains government spending. REUTERS