Service tax to be raised to 8%, says PM

PETALING JAYA: The government plans to raise service tax from 6% to 8% but this will not include services such as food, beverages and telecommunications, says Prime Minister Anwar Ibrahim.

The government will also expand the scope of taxable services to include logistics, brokerage, underwriting and karaoke services, he added while tabling Budget 2024 in Parliament on Friday (Oct 13).

High-Value Goods Tax is increased from 5% to 10% on certain high-value items such as jewellery and watches.

E-invoicing will also become mandatory for taxpayers with income or annual sales exceeding RM100mil from Aug 1, 2024.

Implementation for taxpayers in other income categories to be made in phases with a view of comprehensive implementation by July 1, 2025.