The government on Friday announced an RM388.1 billion expansionary Budget for 2023. The national Budget comprises RM289.1 billion in operating expenditure and RM 99 billion in development expenditure.
For Businesses
1）Electricity tariffs will be maintained for domestic users and SMEs, but tariffs for big companies – except those in the food and agriculture sectors would be increased.
2）Reintroduction of luxury goods tax
3）Reviewing capital gain tax enforcement（disposal of unlisted shares by the company in 2024)
4）The Inland Revenue Board (IRB) and Customs Department will implement a programme for self-declaration of unpaid tax – where a 100% penalty waiver will be granted between June 1, 2023 and December 31, 2024.
5）For the assessment year 2023, the taxable income for small and medium-sized enterprises and micro businesses for the first RM150,000 will be reduced from 17% to 15%.
6）Loan facility from BSN, BNM and TEKUN worth RM1.7 billion to help micro entrepreneurs, women and youth.
7）SJPP prepared to guarantee RM20 billion SME loans.
8）Extending tax incentives to manufacturing companies that move operations to Malaysia and a 15 percent tax rate to the C-Suite until 2024.
9）RM6 billion strategic financing by Bank Pembangunan Malaysia to promote sustainable and automation agenda.
10）The Social Security Organisation (SOCSO) will offer an incentive of up to RM600 per month to encourage the private sector to create higher-quality jobs for new graduates.
11）HRD Corp will provide a total of RM 1 billion to provide skills training programs for registered employees who have accumulated levies.
12）Government agencies to continue providing various financing facilities to SMEs with a total value of up to RM40 billion.
13）RM1.1 billion facility under Bank Negara Malaysia (BNM) aimed at incentivising SMEs to automate processes and digitalise operations.
14）GLC including Khazanah dan EPF can invest in innovative and high-growth local start-up companies to a value up to RM1.5 billion.
15）RM1 billion allocation for BNM Agrofood Financing Scheme to help SMEs increase agro-food production.
For Individuals
1）Households with an income of less than RM2,500 are eligible to receive a donation of up to RM2,500, depending on numbers of children.
2）2 millions of youths aged between 18 and 20 years old will be given a one-off e-cash credit of RM200 each.
3）RM8 billion is allocated to STR to ease the cost-of-living burden.
4）Individual income tax rate will be cut by 2% for the RM35,000 to RM100,000 taxable income range.
5）Individual income tax rate will be increase by 0.5% to 2% for the RM100,000 to RM1 million taxable income range.
6）Extended rail and bus transportation services by My50 monthly pass.
7）Up to 20% discount on repayment of PTPTN loans for 3 months starting on March 1, 2023.
8）Govt also agreed to grant a postponement of repayment to borrowers with a monthly income of RM1,800 and below for a six-month period.
9）Govt has agreed to help those aged 40-54 with EPF savings of less than RM10,000 in their Account 1, by providing an additional contribution of RM500 to their Account 1.
10）Life insurance premium or car takaful premium tax exemption range to include voluntary contribution to EPF for up to RM3,000.
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