Malaysia Raises Service Tax in 2024

Kuala Lumpur (VNA) – The Malaysian Government plans to raise the tax rate from 6% to 8% across an array of taxable services in March.

This policy adjustment is anticipated to accrue an additional 3 billion MYR (626 million USD) in revenue, a vital move towards rectifying fiscal deficits, elevating the quality of public services, and underpinning significant infrastructure endeavours.

In his article published by the Malay Mail, Goh Lim Thye, a Senior Lecturer at the Department of Economics, Faculty of Business and Economics, Malaya University, wrote that the anticipated rise in service costs and the possible impact on consumer expenditure and small and medium enterprises (SMEs) necessitate careful consideration and strategic policy interventions.

According to the scholar, by implementing supportive measures such as a graduated tax relief programme for SMEs, enhanced incentives for innovation and digital transformation, and strengthening consumer protection and price monitoring mechanisms, the government can mitigate adverse effects and maximise the benefits of this tax reform.

These actions will not only facilitate a smoother transition for all stakeholders but also ensure that Malaysia’s economic landscape remains resilient, competitive, and inclusive in the face of this fiscal adjustment./.

Source: Vietnam News Association