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Malaysia: High-value goods tax proposal withdrawn

Principle of HVGT has been applied to the sales tax

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october 17, 2025

The Ministry of Finance on July 29, 2025, confirmed that the government will not proceed with the proposed high-value goods tax (HVGT).

Instead, the principle of HVGT has been applied to the sales tax, with luxury and discretionary goods now subject to a 5% or 10% tax rate effective from July 1, 2025.


For more information, contact a KPMG tax professional in Malaysia:

Sue Lynn Ng | suelynnng@kpmg.com.my

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