- Malaysia has decided not to implement the High-Value Goods Tax and instead integrated its elements into a revised sales tax framework.
- The revised model applies a 5 or 10 percent tax rate to luxury items to generate broader revenue.
- The Prime Minister stated the aim is to streamline the tax regime and ensure effective revenue collection without overburdening the public or businesses.
- The expanded Sales and Services Tax is projected to generate RM5 billion in 2024 and RM10 billion by 2026.
- New tax policies target high-consumption or high-income groups to boost public revenue.
- The Sales Tax on Digital Services is expected to contribute RM1.6 billion this year.
- The Low-Value Goods Tax applies to online purchases below a certain threshold and is expected to bring in RM500 million in 2024.
- Targeted diesel subsidies have replaced blanket fuel subsidies, saving RM600 million monthly.
- The Capital Gains Tax on unlisted shares came into effect on March 1, 2025, and is expected to contribute significantly to national income.
- The High-Value Goods Tax was postponed due to concerns over overlapping taxation and enforcement burdens.
- The government aims to strengthen fiscal resilience and reduce reliance on petroleum revenue through these reforms.
Source: radarr.africa
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.
