2026 Budget – Indirect Tax Perspective

The honorable Minister of Finance, YAB Dato’ Seri Anwar bin Ibrahim, tabled the 2026 Budget on 10 October 2025.

For indirect tax, there was no major new policies introduced. Whilst the government has reiterated its commitment to implement Carbon Tax in 2026, further details have yet to be released. Separately, some of the proposed changes include increase in duties on tobacco products and alcoholic beverages as well as introduction of a digital tax stamp to address counterfeits and tax revenue leakages.

Please click on the link above for more details on the key proposals announced in the 2026 Budget in relation to Indirect Tax.

Soh Lian Seng
Partner - Head of Tax and Tax Dispute Resolution
lsoh@kpmg.com.my
+ 603 7721 7019

Ng Sue Lynn
Partner - Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271

Tai Lai Kok
Partner - Head of Corporate Tax
ltai1@kpmg.com.my
+ 603 7721 7020

Bob Kee
Partner - Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029

Long Yen Ping
Partner - Head of Global Mobility Services  yenpinglong@kpmg.com.my
+ 603 7721 7018

Evelyn Lee
Partner
evewflee@kpmg.com.my
+603 7721 2399

Crystal Chuah Yoke Chin
Associate Director
ycchuah@kpmg.com.my
+603 7721 2714

Regina Lau
Partner
reglau@kpmg.com.my
+603 7721 2188

Titus Tseu
Executive Director 
titustseu@kpmg.com.my
+603 7721 2822

Ng Fie Lih
Partner 
flng@kpmg.com.my
+603 7721 2514