KUALA LUMPUR: The government is planning to raise the Service Tax rate from six percent to eight percent, said Prime Minister Datuk Seri Anwar Ibrahim.
While tabling the 2024 Budget, Anwar said to prevent burdening the people, the increase will not apply to services such as food and beverages as well as telecommunications.
"The government also intends to expand the scope of taxable services, including logistics, brokerage, underwriting and karaoke services."
He said the government will enforce the implementation of Capital Gains Tax for the disposal of unlisted shares by local companies based on net gains at a rate of 10 percent starting March 1.
"The government is also weighing exemptions of Capital Gains Tax on the disposal of shares related to specific activities, such as Initial Public Offerings (IPOs) that are approved, internal restructuring, and venture capital companies subject to specified conditions."
Anwar added that the government will enact new legislation to implement a High-Value Goods Tax at a rate of five to 10 percent on specific high-value items such as jewelry and watches, based on the threshold value of the goods.