KUALA LUMPUR: The government expects an additional RM3 billion in revenue next year through the increase in the service tax rate to 8 per cent from 6 per cent.
Treasury Secretary-General Datuk Johan Mahmood Merican said the amount was an estimate made by the Ministry of Finance (MoF). “As has been mentioned, the MoF currently estimates that it will get RM3 billion from measures related to the service tax,“ he told reporters after the post-Budget 2024 discussion programme here today.
In the Budget 2024 presentation last Friday, Prime Minister Datuk Seri Anwar Ibrahim announced the government’s proposal to increase the service tax rate to 8 per cent from 6 per cent.
But in order not to burden the people, Anwar said the increase would not include services such as food and drinks and telecommunications.
According to the 2024 Federal Government Fiscal Review and Revenue Estimate Report issued by the MoF, the government is expected to collect RM35.8 billion from the sales and service tax, or 1.8 per cent of gross domestic product, in line with higher consumer and business confidence.-Bernama