Finance ministry (MoF) secretary-general Johan Mahmood Merican said this is to ensure the agenda to drive economic growth does not affect sectors in the process of recovery, including tourism and retail post-Covid-19.

Referring to the LVG tax, he said MoF is still studying the matter and have not yet decided how it will be structured and when it will be implemented because “we need more feedback and engagement sessions”.

“At the MoF, we are also examining the implementation of the Luxury Goods Tax which involves non-controversial goods such as gold, and how we can have mechanisms for foreign tourists such as rebates when they shop in Malaysia,” he told the media at KPMG’s Tax and Business Summit 2022 today.

Johan said the model for the implementation of the Luxury Goods Tax expected to be introduced in the second half of this year will also be developed independently, and not according to the model from foreign countries.

“This is because it needs to take into account the type, price and suitability of the item with the conditions in this country to be considered a luxury item.”

Johan added the Capital Gains Tax (for non-listed shares sale) will be implemented in 2024 at a low rate as announced by prime minister and finance minister Anwar Ibrahim during the Budget 2023 presentation on Feb 24.

Meanwhile, Inland Revenue Board (IRB) CEO Mohd Nizom Sairi said the board is trying to promote a more conducive atmosphere between taxpayers and tax administrators through several approaches to create transparency and mutual trust between the two parties.

He also hopes that the IRB’s Special Voluntary Disclosure Programme (SVDP) which will run from June 1, 2023 until May 31, 2024 will give an opportunity to individuals who have never been registered as taxpayers or declared their income, to participate in the programme.

No penalty will be imposed on them as previously it was between 10% and 15% as per Budget 2019.