KUALA LUMPUR, Feb 27 — The implementation of the High-Value Goods Tax (HVGT) will remain on hold as the federal government is placing higher priority on other fiscal reforms announced in 2024, said the Finance Ministry.It said this in a written reply to Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal, who sought clarification on the government's plans and impact assessments for the tax, which was initially proposed in 2023.“At present, the implementation of HVGT is still postponed because the government must prioritize several fiscal reform measures that were newly introduced in 2024, such as the imposition of tax on low-value goods and the retargeting of diesel subsidies,” he explained in his parliamentary reply. HVGT was initially proposed to tax luxury goods such as jewellery, watches, and high-end fashion items, with the aim of generating additional revenue while ensuring progressive taxation.However, concerns have been raised over its potential impact on consumer spending and the broader economy, particularly in sectors catering to affluent buyers and tourists. The government previously that the feasibility of HVGT is still being assessed as part of a broader review of the Sales and Services Tax (SST).The HVGT was initially meant to be imposed starting May 1, 2024, at a rate of between 5 and 10 per cent, depending on price levels.