Malaysia

High value goods tax

A high value goods tax is expected to be introduced at the rate of 5% to 10% on certain high-value items, such as jewellery and watches, based on the threshold of price. The implementation date was proposed to be on 1 May 2024. Its implementation has since been deferred to allow the government to carry out engagement sessions with the relevant stakeholder groups to finalise the details of the high value goods tax.

Increase in service tax rate from 6% to 8%

Effective from 1 March 2024, the service tax rate has increased from 6% to 8% for all taxable services previously subject to tax at 6%, except for:

• Provision of food and beverage services.
• Telecommunication services.
• Parking services.
• Logistics services.