- Malaysia will revise its sales tax rate and expand the services tax starting July 1
- Sales tax of 5 to 10 percent will apply to non-essential and luxury goods
- Services tax will include property rentals, construction, financial services, private healthcare, education, and beauty services
- The aim is to increase revenue and strengthen the fiscal position without burdening most people
- Prime Minister Anwar Ibrahim announced the tax expansion during the budget announcement last October
- The expansion was delayed from May due to business concerns
- The Federation of Malaysian Manufacturers requested a deferral due to tariff and trade uncertainties
- Selected exemptions will be provided to avoid double taxation
- Penalties for non-compliance will not be imposed until December 31
Source: channelnewsasia.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.
