Focuses on reviewing the existing sales tax and service tax regime instead of introducing a completely new tax
The Minister of Finance on October 18, 2024, tabled the 2025 budget, which focuses on reviewing the existing sales tax and service tax regime instead of introducing a completely new tax.
The budget announced that the sales tax rate would be increased on non-essential items such as imported premium goods, while the service tax would be expanded to cover commercial services between businesses from May 1, 2025.
Additionally, the budget proposed that the excise duty on sugar sweetened beverages be increased in phases starting from January 1, 2025, at RM0.40 per litre.
Read an October 2024 report prepared by the KPMG member firm in Malaysia that addresses these indirect tax proposals, as well as: