Service Tax Rate Increases in 2024
In a recent Budget 2024, the government proposed an increase in the service tax rate from 6% to 8%. However, this increased rate does not apply to certain essential services such as food and beverages, telecommunication as well as parking and logistics.
The new rate for Service Tax will be effective on 1 March 2024. The service tax scope will also be expanded to include logistics, brokerage, underwriting, and karaoke services.
In essence, the SST 2024 adjustment in Malaysia represents a bold stride in fiscal reform. Its impact, spanning the economy to individual spending, will depend on the policy’s effective implementation and the market’s adaptive capabilities.
