Malaysia Gold Association calls for higher threshold, lowest tax rate for gold jewellery in high value goods tax
Tue Mar 26 2024
The Malaysia Gold Association (MGA) is proposing that the government impose a higher threshold of RM50,000 and a tax rate of 5% — the lower end of the proposed range — for gold jewellery in the implementation of the high value goods tax (HVGT).
MGA said that this is crucial to ensure the survival of thousands of gold jewellers and traders in the country and to minimise the impact of the tax regime on the gold jewellery industry in Malaysia.
The HVGT, formerly known as the luxury goods tax, is slated to be implemented on May 1 this year — less than two months from now. The tax rate is in the range of 5% to 10%.
Currently, details regarding HVGT are scant. The government has yet to define what would fall under “high value goods” and the threshold in which the items will be subjected to the tax.
The newly re-elected president of MGA, Datuk Wira Louis Ng, said with the evolving volatility of the precious metals market worldwide due to geopolitical tensions, as well as the ongoing economic challenges in Malaysia, the association is inclined to take up important roles to maintain the stability and survival of the gold industry in the country.
In addition to this, MGA also pointed out that with the mandatory implementation of electronic invoicing (e-invoicing) from Aug 1 onwards, conventional jewellers may face difficulty adhering to the new ruling.
“Some conventional jewellers may have difficulties due to challenges in adapting to new technologies, integrating e-invoicing with existing systems, and ensuring staff proficiency in this digital transition,” MGA said.
Beginning Aug 1, taxpayers with an annual turnover exceeding RM100 million will be mandated to comply with the e-invoicing requirements under the first phase of the initiative.
E-invoicing will be implemented in phases for different revenue groups and by July 1, 2025, all taxpayers undertaking commercial activities will be required to adopt the e-invoicing system.
Source: https://theedgemalaysia.com/