HIGHER Duty Selections
Additionally, Mr. Anwar added on Friday that the government will increase the scope of the Sales and Service Tax ( SST ) to increase both revenue and progress, while also ensuring that the underprivileged are not burdened.
According to Mr. Anwar, the company tax’s scope will be expanded to include financial services that are based on charges, such as professional services.
” The basic food items used by the people will not be subject to the sales revenue. It will be imposed on non-essential food products like superior goods, including herring and avocado”, he added.
Before finalizing the development of the scope and SST’s expansion rate, the government will meet with stakeholders and the damaged industries.
The SST’s gradual development will start effective on May 1, 2025. According to Mr. Anwar, a portion of the revenue will be used to increase the amount of people’s funds support and raise the standard of healthcare and education.
In anticipation of better income tax set as a result of the gradual rollout of e-invoicing and a positive economic perspective, immediate revenue collection is projected to increase by 6.6 % to RM188.8 billion in 2025.
According to the Finance Ministry, individual income tax, which is projected to increase by 7.8 % to RM44 billion in line with the robust job market and rising wages, is still the largest contributor to strong levies.
Direct income is forecast to fall by 9.8 per share to RM70.2 billion, with the SST series making up the bulk of it. According to the government, the increase coincides with the full implementation of the new company income level as well as with boosting firm assurance and consumer sentiment.
However, non-tax revenue is projected to reduce slightly to RM80.7 billion due to lower revenues from investment money. In light of concerns over lower world oil prices, national oil firm Petronas is forecast to give a payout of RM32 billion in 2025, the same as it will in 2024.
The government continued,” The government will continue to strengthen profit management, while enhancing efficiency through the use of technological developments and novel approaches,” the ministry continued.
According to the timeline posted on the Indonesian congress website, the budget statement may be deliberated at the plan level for eight days starting on October 21, followed by responses from the relevant ministries on November 6.