Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) questioned the status of the High-Value Goods Tax (HVGT) during the debate on the Supply Bill 2025 in the Dewan Rakyat on Tuesday (Oct 22).
He also asked how much revenue the Low-Value Goods Tax had generated and its impact on the economy compared to the HVGT.
Additionally, Dr Wee criticised the government for increasing excise duties on sugar-sweetened beverages while subsidising sugar manufacturers.
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He also asked how much revenue the Low-Value Goods Tax had generated and its impact on the economy compared to the HVGT.
Additionally, Dr Wee criticised the government for increasing excise duties on sugar-sweetened beverages while subsidising sugar manufacturers.
Read more at https://tinyurl.com/2ut8j9ux
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00I turn to the HVGT tax.
00:03After studying this tax, I wonder what has happened to the HVGT tax.
00:12If in the 2014 tax announcement, which was very respectful of the Prime Minister,
00:17there was a touch on the cancellation of a new law for the implementation of HVGT
00:24at a rate of 5-10% above the high-value goods.
00:28Such as watches and jewellery, based on the value of the goods.
00:34In response to me, which I received from the Ministry of Finance,
00:39it was also informed that the implementation of the tax should start on 1 May,
00:47on the same date as the decision by the Prime Minister.
00:50What has happened to the HVGT?
00:53Isn't the implementation of the tax something that is expected to be implemented
00:58and is considered to be able to contribute an additional 1 billion ringgit to the government?
01:03What caused the government to decide not to implement HVGT?
01:10And what about other countries such as China, Taiwan, Indonesia, South Korea and Chile?
01:19And until now, the government still has not been able to determine the value of luxury goods.
01:29It has been almost a year, but there is still no news about HVGT.
01:35What continues to be a question is the people.
01:38The people ask, why can we implement a low-value goods tax
01:43for goods imported with a value of less than 500 ringgit since 10 months ago?
01:48HVGT is said to be fair compared to HVGT.
01:53I want to ask, how far has the statement of HVGT
01:57so far managed to stimulate the economy of the people compared to the implementation of HVGT?
02:02Next, about the 2% dividend tax.
02:06In 2025, HVGT received more than Rp100,000 in dividends from individual shareholders.
02:16This is quite surprising.
02:18After 2008, Malaysia implemented a single-tier HVGT system
02:23where companies do not need to cut dividends paid to shareholders.
02:30HVGT is only required at the level of Malay corporate HVGT.
02:35Countries that use the 2% dividend tax are usually developed countries
02:42such as the US, UK, France, Canada, South Korea, and Japan.
02:47The implementation of the dividend tax is not directly visible
02:51as a continuation of the HVGT tax on non-listed shares introduced in 2024.
03:02This negative development has the potential to justify local investors
03:06with assets worth more than Rp2 million
03:09by estimating the dividend yield as much as 5%.
03:17Indeed, the government needs to clarify
03:19what will be used to get dividends from all classes of assets
03:26and whether foreign investors are also affected by the dividend tax.
03:32In addition, I also see dividends worth more than Rp100,000
03:38as a barrier to small and medium-sized enterprises
03:43from expanding their business or gaining high profits.
03:48Last night, Pedasama also made the same statement.
03:52This is mainly due to PKS players.
03:56Most of the dividends will be distributed to the shareholders
04:00as many of them have not taken their salaries due to financial problems.
04:06So, does the government consider excluding PKS from the 2% dividend tax?
04:14Next is the sugar excise tax.
04:17To increase the duty excise for sugar consumption
04:21starting from 1 January next year
04:24with an increase of 40 cents per litre
04:28from 5 cents to 9 cents.
04:31I don't quite understand.
04:34The government cannot impose a tax
04:37but at the same time provides subsidies to sugar consumers
04:41due to safety factors.
04:43That is our justification.
04:46This is like giving vitamins and medicines at the same time.
04:50The government cannot do both at the same time.
04:53We have to choose one.
04:55What is our desire?
04:57What is our objective?
04:59The price of sugar in Malaysia is below the ceiling
05:01due to the government's subsidy of Rp42 million per month
05:06to all sugar consumers in Malaysia since November 2023.
05:10This is what needs to be stopped
05:13due to safety factors.
05:17So I want to ask
05:19can the government continue to provide incentives and subsidies
05:23to sugar consumers by increasing the duty excise?