Aside from a targeted subsidy programme for RON95 petrol, the upcoming Budget 2025 is also set to bring forth the reintroduction of the goods and services tax (GST), Bernama reported. According to RHB Investment Bank analyst Alexander Chia, Malaysia is looking to broaden its tax base now that the unity government under prime minister Anwar Ibrahim is said to be secure.
“We are confident that the government will make more meaningful progress in subsidies and initiatives to broaden the tax base to further reduce the fiscal deficit, provide room for infrastructure investment and create opportunities to control the national debt.
“In this aspect, the two main initiative that have yet to be decided are the rationalisation of the subsidy of RON95 petrol and the reintroduction of GST which is compatible with the full implementation of e-Invoicing,” said Chia in a research note.
The tax was first introduced in April 2015 at a rate of 6% (which reduced prices for some cars) but was repealed in 2018 after the then-new Pakatan Harapan government came to power, replaced by the 10% sales and service tax (SST). Despite the political turmoil that has happened since then, GST was never brought back, even though it was mooted several times.
The bank expects that Budget 2025, which will be tabled on October 18, will focus on fiscal prudence with an emphasis on low-income groups; it will also demonstrate a commitment to reform and include clear initiatives that, as mentioned, will broaden the tax base. It’s projected that the fiscal deficit target will be lowered to 3.5% of the country’s GDP, down from 4.3% this year.
There’s also a possibility that the tabling will see the introduction of the postponed High Value Goods Tax (HVGT), although as yet it’s unclear what the tax rate, types of goods affected and set value threshold will be. The tax was due to be implemented in May with a threshold of RM200,000 for cars and a rate of between 5 to 10%, but was put on hold as the government worked to fine-tune the policies and legal frameworks.
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Madani government want to tax the rich to help the poor. why not the ministers and MP set a good example first? reduce their allowances and do not allow stacking of pensions? they only know how to take more from the T20 but kept their own gains and benefits to themselves.
Janji PH tetap dicapati. Phui! Anwar & Pizi sila jawab!
RM100k holiday allowance for cabinet members every year. Inherited from previous government. I wonder this got abolished or not? Otherwise, pot calling kettle black.
PH become gomen on the premise of abolishing GST, if they bring back GST they must step down immediately for breaking yet another of their promises. We are still waiting for their promise of RM 1.50/L petrol…
Why not stop spoonfeeding the useless typeB civil servants and cut 30% from bloated base? More than 1bil allocation to jakim , whats the ROI ?
why not stop subsidy for luxury car and EV car that only 10% rich buying. stop spoonfeeding these ungrateful selfish people who cant see their own advantage
Use your brain before comment!
Luxury car, I accept BUT not for EV. EV is mainly for environmental friendly than luxury cars and sport cars. Even maintenance also too expensive for luxury vehicles and also not durable than electric vehicles too.
Agree! Why need to buy luxury cars when too expensive and also wanting to show off….
How is luxury car being subsidised? So much tax has been paid for it. Rich already pay so much tax. You want to talk, start paying a bit of tax first.
I didn’t aware gov has put any subsidy on luxury car. The car import and excise duty is much higher in luxury car and people afford to buy it will still buy it anyway. For EV it is future and it gonna be more in the future when RON95 price hike. Gov have to reduce the RON95 subsidy because Malaysia is over subsidy and cheaper price than Saudi Arabia. Do not compare with Brunei who only have 450k population. The population is too small and it is easy for gov to subsidise. Our car sales yearly 700k units are more than total population of Brunei and Brunei yearly car sales less than 15k unit.
Well said..cut the tongkat allocation..and you have plenty of money in coffer
Without tongkat…con-man cannot cut the forest and make huge money from it..do you know forest logging tauke came from which group of people..? Only tongkat people that can make con-man rich..so..u help me..i help u…since 1200 AD..
Why rhb spreading misinformation to public what is the motive?
Why keep on spoon feeding minister’s husband with 3 billion projects?
Why keep on spoonfeeding that certain type of school when they already receiving monies from alcohol and gambling companies?
Why keep on spoon feeding politician with opportunity to delay his terowong project corruption case from progressing?
EV or not EV, if categorises as luxury vehicles, should be tax. And anyways, aside that, we don’t need so much of vehicles, as already too many cars on the road and traffic is everywhere
Goodness do you actually know how much tax have been imposed on luxury and import cars
Exactly. Give money for people to drive more and more. Meanwhile you tax more to other people and provide lousy public transport services. More traffic, more taxes, less subsidies, etc. We are sc*wed
This is the problem when you have a govt that only knows how to tax and remove subsidy to bring more hardship to the people when they themselves are not setting a good example. Complain high debt. But they increased debts more than RM50 billion. Corruption cases dropped or deliberately ignored and wastage continue. People are not stupid and you can not continue to bluff your way through!!!
If want reintroduce GST, then please make it fair. A flat rate that covers all goods and services meaning no excise duty or additional duty craps for cars, tobaccos or alcohol.
If you continue to find ways to further tax the rich, they will find more ways to avoid tax or hide their money. If you treat them fairly, then they will increase their spendings on goods which will contribute more to tax.
I give an example. Kopitiam charges RM2 for a glass of barley. The customers order 1 glass for the entire table just to meet the ordering of drinks requirement. But if the kopitiam charges RM1 for the barley drink, everyone in the table will order 1 glass. Yang mana lebih untung? So if you continue to find additional taxation for the rich, they also reluctant to spend here and in the end result in less tax revenue
I am all for the GST reintroduction
Only if the very extremely stupid LHDN e-invois requirement is scrapped.
Madanon, you know how low IQ your voter base is. Please organize another Tabung Harapan to “save malaysia” lah. Those street-rolling fools that can’t even speak our national language properly will give you billions.
Tax this, tax that. At some point you will realize businesses will no longer want to invest anymore because the cost of everything will go up and then government will go panic. Loom at the West, all they do to solve problems is to tax the rich to death. Now businesses no longer want to invest in their countries because taxes are too high and the cost of doing business are ridiculous. They open factories in Asia or Mexico instead of at home. And then when the trade deficit grew out of control they blame everybody else except for themselves. Is this the move we want to follow? The government can save a lot of money by firing useless pen pushers in the kementerian. Fire all the slackers that took advantage of the system. They can stop giving all these ridiculous Bantuan Rahmah or whatever, printing money isn’t going to solve problems. Stop bailing out useless unproductive government link companies and so many more they can do to control spending. Don’t take the lazy way out to solve problems. If you tax the rich to death and take away all the subsidies, they will stop investing in Malaysia. Why open a factory in Malaysia when it is far cheaper to invest in Vietnam or Indonesia? Wake up people, u can’t make the poor less poor if you don’t make the rich richer.
Is GST beneficial to the country’s economy?
Absolutely!
Before gov reintroduce GST, they should abolish duty and ridiculous tax of foreign vehicles!
Wondering where did all the vehicle taxes and duties money went