REVENUE FROM TAX INCREASE TO BE USED FOR BENEFICIAL INITIATIVES

PUTRAJAYA, Oct 20 (Bernama) -- Revenue from the increase in the service tax will be returned to the people via initiatives announced in Budget 2024, said Deputy Finance Minister I Datuk Seri Ahmad Maslan.

Ahmad said he is aware of the various views on the increase in service tax (from six per cent to eight per cent).

Nonetheless, he emphasised that the move was aimed at reforming the national economy.
 

“The move is not pointless, as the revenue will be returned to the people,” he told a press conference after launching the MySawit, MyExcise (Phase 2) and Cubic systems by the Royal Malaysian Customs Department (RMCD) here today.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the increase in the service tax during the tabling of Budget 2024, however,  the increase will not apply to services such as food and beverages as well as telecommunications.
 

Ahmad noted that the RMCD aims to increase revenue collection by RM1.5 billion this year.

In 2022, the RMCD’s tax collection stood at RM53.54 bilion, a 25.97 per cent increase from RM11.03 billion collected in 2021.

Meanwhile, he said the three RMCD systems launched today will improve efficiency through the application of technological innovations and improvement of work procedures, and at the same time, reducing leakages and increasing revenue.

MySawit is a system to help oil palm producers who own plantations spanning no less than 40.46 hectares to register with RMCD under Windfall Profits Levy Act 1998, while MyExcise is a system used by manufacturers to apply for licenses and pay excise duty online.
 

Cubic is a system which allows vehicle appraisers and related companies to search for information on fully imported Completely Built Unit (CBU) vehicles.

-- BERNAMA