KUALA LUMPUR, October 13 — The Malaysian government has announced an increase in the Sales and Services Tax (SST) from 6 percent to 8 percent in its 2024 budget. Prime Minister Datuk Seri Anwar Ibrahim clarified that this increase would not apply to food and beverages or telecommunications services. Instead, it will be extended to include logistics, brokerages, and karaoke services. Furthermore, the government plans to implement a Capital Gains Tax (CGT) on the disposal of shares not listed in local companies, starting on March 1, 2024.
This tax will be levied at a rate of 10 percent based on the net profit. In addition, Anwar mentioned that the government is considering exemptions for the CGT on the disposal of unlisted shares for approved initial public offerings. The budget presentation also revealed that the government is working on legislation to raise the Luxury Goods Tax from 5 percent to 10 percent. These changes are part of the government’s efforts to boost revenue and strengthen the country’s financial position.
