Malaysia abandons plans to implement the high value goods tax.

Malaysia has abandoned plans to introduce a separate high-value goods tax, which was first announced about two years ago. The Malaysian Ministry of Finance stated in a written response to parliament on Tuesday that the Southeast Asian country has instead chosen to include luxury goods and non-essential items in its existing sales tax system. The written reply was in response to a question about government financial reforms and the expected increase in national revenue from new taxes. According to the revised sales tax framework in July, such goods will now be taxed at a rate of 5% or 10%, reflecting the intention behind the shelved luxury goods tax. This high-value goods tax, also known as luxury goods tax, was initially proposed in the revised 2023 budget but its implementation has been postponed.