Malaysia Scraps High Value Goods Tax (HVGT)

KUALA LUMPUR, July 2025 — Great news for travelers and shoppers! Malaysia has officially scrapped its plan to implement the High-Value Goods Tax (HVGT). Prime Minister Datuk Seri Anwar Ibrahim confirmed that the government will no longer proceed with the standalone luxury goods tax.

✅ Good News for Shoppers & Travelers

The Malaysian government, led by PM Datuk Seri Anwar Ibrahim, has officially scrapped the proposed HVGT. This tax would have imposed an additional 5%–10% levy on luxury goods, such as:

• Branded watches & jewellery
• Designer handbags
• High-end electronics and fashion items

Tourists planning to shop in Malaysia — especially for luxury souvenirs or gifts — can now breathe easy:
🛍️ No separate HVGT means lower total cost at checkout for these items.

🔁 Replaced by Revised Sales Tax (SST)

Instead of HVGT, the revised Sales Tax now covers luxury and discretionary goods at:

• 5% or 10% SST, depending on product category

💡 Tourist Impact: While tax still applies, it’s more streamlined and doesn’t involve a special luxury tax layer.

💼 Fiscal Reforms, Not Tourist Burden

Malaysia’s broader fiscal reforms (e.g., diesel subsidy rationalisation, Capital Gains Tax on unlisted shares, Low-Value Goods Tax) aim to boost national revenue without burdening everyday shoppers or tourists.