Sst Revision To Strengthen Country S Fiscal Position Kri


BUDGET 2024 | The government's move to increase the sales and service tax (SST) to eight percent from six percent under Budget 2024 will strengthen the country’s fiscal position while minimising the impact on households, said Khazanah Research Institute (KRI).
Its chairperson Nor Mohamed Yakcop said measures that target subsidy rationalisation, along with the expansion of the tax base will allow the country’s fiscal position to remain resilient amidst the increased instability and complexity in the international arena.
"KRI believes that the government’s focus in prioritising structural reforms, particularly through measures that emphasise fiscal responsibility and inclusive growth, is timely in the context of Malaysia’s growth and development in the long term.
"We look forward to the government's announcement regarding the precise mechanism for subsidy rationalisation, which was mentioned in the budget," he said in a statement in response to Budget 2024 tabled by Prime Minister Anwar Ibrahim in Parliament today.
Anwar, who is also the finance minister, said the government plans to increase the service tax rate to eight percent from six percent, but this does not include services such as food and beverages, and telecommunications.
Nor Mohamed said KRI also welcomes the government's move to kickstart the nation’s industrial transformation agenda in line with the New Industrial Master Plan (NIMP) 2030.
"The shift towards tiered incentives is encouraging and enables Malaysia to create new economic clusters, extend domestic linkages, and ensure environmental sustainability.
"We are confident that Budget 2024 will set Malaysia on a growth trajectory that will safeguard the rakyat’s well-being while advancing the nation’s economic and industrial transformation agenda as well as its resilience," he added.
- Bernama


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