Budget 2024: Govt proposes to up Service Tax to eight per cent, introduce new tax

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Prime Minister Datuk Seri Anwar Ibrahim - Photo by Mohd Rafiq Redzuan Hamzah/Sinar

KUALA LUMPUR - The government plans to raise the Service Tax rate to eight per cent and introduce a new tax from next year.

Prime Minister Datuk Seri Anwar Ibrahim said that some of the tax reform measures would be implemented to expand the country's revenue base and at the same time not burden the majority of the people.

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"The government plans to increase the Service Tax rate to eight percent instead of six percent.

"However, in order not to burden the people, the tax increase does not include services such as food and beverages and telecommunications.

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"The government will also expand the scope of taxable services to include logistics, brokerage, underwriting and karaoke services," he said while tabling the Malaysia Madani Budget 2024 at the Dewan Rakyat, here.