- The Malaysian government expects to raise an additional RM3 billion in revenue through an increase in the service tax to 8%.
- The increase in service tax does not include food and beverages, telecommunications, and other consumer-based items.
- The government is considering implementing the goods and services tax (GST) in the future.
- Details of fuel subsidy rationalization, particularly for RON95, are still being worked out.
- The government aims to gradually adjust the subsidy system to minimize the impact on families and businesses.
- Sufficient revenue is always ensured to cover operating expenditures, as borrowing for operating expenditures is not allowed by law.
- Budget 2024 focuses on basic amenities and talent development instead of large-scale projects.
- Prime Minister Anwar Ibrahim wants to prioritize getting the basics done rather than building tall skyscrapers.
- The budget aims to reduce the fiscal deficit to 4.3% of GDP next year and 3.2% by 2025.
Source: theedgemalaysia.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
