Malaysia

MoF: No new taxes in near future

There will be a review of the sales tax and a broadening of the service tax's scope from May 1, next year

Updated 1 year ago · Published on 05 Dec 2024 4:42PM

MoF: No new taxes in near future
The ministry said the government will ensure the tax measures announced are progressive and easily administered - December 5, 2024

THE government has no intention of introducing any new tax soon, according to the Finance Ministry.

The ministry said the government's present focus is on increasing compliance and improving the existing tax system as well as implementing tax measures that have already been announced in Budget 2025, reported Bernama.

"(Before introducing a new tax,) the government will consider first the revenue requirement; current economic situation; the national tax system's overall structure, limits and challenges; possible room for improvement; and most importantly, the impact on and preparedness of the people," it said in a written reply on the Dewan Negara website.

The ministry was replying to a question from Senator Datuk Seri S. Vell Paari who wanted to know whether the government has plans to introduce any new tax in the near term and, if so, what measures would be taken to ensure it would not burden the people amid the rising cost of living.

The ministry said that among the taxes to be implemented are the global minimum tax, effective Jan 1, 2025, on multinational companies with global annual revenue of at least 750 euros and the two per cent tax on dividend income starting from the year of assessment 2025.

Also to be implemented are e-invoicing in stages starting Aug 1 this year, for taxpayers with more than RM100 million turnover as well as the self-assessment stamp duty system (STSDS) in phases based on the type of instruments or agreements.

In addition, there will be a review of the sales tax and broadening of the service tax's scope from May 1, next year, and a review of the excise duty on sugary drinks from Jan 1.

The ministry said the government will ensure the tax measures announced are progressive and easily administered, do not harm the cost of living or economic growth, and can generate sustainable revenue for the government. - December 5, 2024

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