As Malaysia shapes its 2025 Budget, talks of new taxes have stirred up a buzz across the nation.
With government revenue on the line, officials are exploring options to fund public services without putting too much strain on citizens.
One proposed tax, however, is drawing serious concern: the reintroduction of an inheritance tax.
Think tank voices concern
The Institute of Strategic Analysis and Policy Research (Insap) warns that an inheritance tax could hit middle-income families and small businesses especially hard, reported FMT.
According to Insap’s chairman, Pamela Yong, this tax—last seen in Malaysia back in 1991—could put family-run small and medium-sized enterprises (SMEs) under unnecessary financial pressure, potentially stifling entrepreneurship and slowing wealth creation within the middle class.
What else could be on the table?
This inheritance tax isn’t the only proposal making waves. A report by Utusan Malaysia hinted that the 2025 Budget may include a range of new taxes:
- High-value goods tax
- Carbon emissions tax
- Unhealthy food tax
- Artificial intelligence tax
While these are aimed at broadening Malaysia’s revenue base, Yong suggests another approach: reintroducing the goods and services tax (GST).
According to her, feedback from grassroots communities indicates GST could provide a more stable revenue source, with a wider tax base than the current sales and service tax (SST).
The takeaway
As the government weighs its options, public opinion highlights the fine line between raising funds and maintaining economic balance. With the 2025 Budget around the corner, all eyes are on which path Malaysia will choose to sustain growth without burdening its people.
