Anwar, who is also the finance minister, said the bill on the HVGT, which was previously known as the luxury tax, would be tabled during the ongoing parliamentary meeting.

The tax was first announced when he tabled the 2024 budget.

“If approved, the legislation is proposed to come into effect on May 1,” he said in a reply to Jimmy Puah (PH-Tebrau), who wanted an estimate on the revenue that could be earned through the HVGT.

Puah also wanted to know when the tax would be imposed.

Anwar had said when presenting the budget last October the HVGT would be set between 5% and 10%.

He said the tax would be applied to items such as jewellery and watches that exceeded a certain price threshold.

In a study made by an accounting firm, Crowe Malaysia, assuming a flat rate of 10% of the tax, the government could potentially generate RM222 million in revenue from the tax on luxury watches.

It said that in 2022, the sales value of manufactured watches, clocks and parts in Malaysia was RM2.22 billion.