This is a substantial amount as there are three income brackets within this range that will see the reduction. The personal income tax rate for the brackets between RM35,000 and RM100,000 will be reduced by 2%, benefitting a large percentage of Malaysians who are taxpayers. These guarantees will also extend to non-banking financial institutions to benefit small vendors. The government also guarantees up to 90%. The government also announced that it will cover driving test fees for class B2 motorcycle, taxi, bus and e-hailing.īank Negara Malaysia was also revealed to be offering up to RM10 billion in loan funds to support business development.įinally, up to RM20 billion in SME loans are being made available for the high-tech, agriculture, and manufacturing sectors, guaranteed by Syarikat Jaminan Pembiayaan Perniagaan (SJPP).RM330 million will be provided by TEKUN, including RM10 million that will be allocated towards assisting low income youth businesses.RM1 billion will be provided by BSN to focus on developing MSMEs and hawkers.A major step for inclusiveness and equality. RM300 million will be reserved for women and youth micro businesses.They also intend to provide RM1.7 billion in loan facilities for MSMEs and small vendors under agencies such as Bank Negara Malaysia, BSN and TEKUN. MSMEs and small business owners can breathe a sigh of relief as the government intends to allocate up to RM40 billion in loan facilities and financing guarantees for SME entrepreneurs. Additionally, up to RM176 million has also been set aside for upgrading premises and business facilities under agencies such as MARA, DBKL, Perbadanan Usahawan Nasional Berhad (PUNB), and Perbadanan Pembangunan Bandar (UDA). Up to RM50 million has been allocated to building and upgrading 3000 small hawker stalls and kiosks throughout the country. Businesses will be happy to know that the corporate income tax on the first RM150,000 revenue will be reduced of 17% to 15%.Ī huge emphasis has also been placed on helping small hawkers and vendors.
Just like the previous budget announcement, 2023 will be the year where Malaysia focuses on helping businesses recover from the pandemic whilst also placing even greater emphasis on getting SMEs back on their feet. With that in mind, half of the income from the excise duty tax will be diverted back to the Ministry of Health, in support of the Generational Endgame (GEG) initiative to improve the quality of healthcare services.
As such, the government now believes that it is better to regulate and tax the products, seeing that they have been unable to prevent Malaysians from getting their nicotine fix. However, it has not stopped an explosion of vaping culture. As it stands, these products are illegal in Malaysia. This tax will be introduced at a low rate.Ī new excise duty is being planned to be imposed on e-cigarettes and vape liquids/gels that include nicotine. More specifically, this tax will apply to unlisted share disposable by companies starting in 2024. What exactly the tax covers was not specified, but the Finance Minister mentioned luxury watches and high-end fashion as examples.Īdditionally, there will be new taxes placed on capital gains. In theory, this will not affect the average Malaysian but will help increase govt revenue from high value purchase. One of the biggest highlights that came out of Budget 2023 was the introduction of new taxes on selected goods.Ī new luxury tax that targets high end products usually only bought by the ultra rich has been proposed. It even surpasses the previous Budget 2023 announcement in October 2022 which was at RM372.3 billion. This staggering amount far eclipses the 2022 budget amount of RM332.1 billion. In yet another historic move, the total budget was announced to be at RM388.1 billion. A new Budget 2023 has been tabled, and it is proving itself to be even bigger than the last announcement! During a live broadcast on 24 February 2023, Prime Minister and Finance Minister Anwar bin Ibrahim presented Budget 2023 in Parliament.ĭubbed the MADANI budget, the main focus is an emphasis on driving an inclusive and sustainable economy, inspiring confidence with institutional and governance reforms, and facilitating social justice by reducing inequality.
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