2024 Budget - Indirect Tax Perspective and KPMG’s Personal Budget Widget

The honourable Minister of Finance, YAB Dato’ Seri Anwar bin Ibrahim, tabled the 2024 Budget on 13 October 2023.

One of the major proposals is the proposed increase in the Service Tax rate to 8% from the current 6%, excluding certain taxable services such as food and beverage as well as telecommunications. The highly anticipated Luxury Goods Tax which was first announced during the re-tabled 2023 Budget was also touched in this 2024 Budget where it is proposed that a High Value Goods Tax at a rate of 5% to 10% be imposed on certain high value items such as jewellery and watches, depending on the specific threshold.

In addition, there are a number of proposals in relation to excise duties on sugar sweetened beverages and chewing tobacco.

Please click on the link above for more details on the key proposal announced in the 2024 Budget in relation to Indirect Tax.

From the personal income tax perspective, there is no new tax measures. However, a few existing reliefs are expanded to include other related expenses, and some are extended to a longer period. Although this year there are only a handful of reliefs that have changes, there may still be tax savings for certain expenses incurred.

KPMG’s Personal Budget Widget is a complimentary tool that provides preliminary calculations of possible tax savings arising from Malaysia’s 2024 Budget proposals, which you may enjoy based on your personal circumstances.

Note: This tool is designed to provide general guidance only and should not be used or relied upon as a substitute for actual tax calculations. Professional advice should be sought regarding your specific circumstances. The tax savings will be calculated solely based on reliefs announced in the 2024 Budget proposals announced on 13 October 2023. Where appropriate, assumptions have been made that all reliefs chosen by you will be claimed up to the maximum allowable amount.