What does this topic have to do with me?
As we enter 2024, my country will implement some new policies and adjust existing taxes. What are the connections with us?
Service tax increased to 8%
Starting from March 1, my country's service tax will increase from 6% to 8%, and the scope of taxation services will be expanded to logistics, brokerage and karaoke services.
Despite this, the service tax on food, beverage, communications and parking lots remained at 6%. The government said this is to avoid increasing the burden on the people.
Online shopping for overseas goods less than RM500 will be subject to a 10% tax
Friends who often shop online from overseas may have to spend more money in the future.
Starting from January 1, a 10% sales tax will be imposed on a purchase and sale of overseas low-priced goods (LVG) below RM500.
According to the definition of the Customs Bureau, low-priced goods refer to goods that do not exceed RM500 and enter my country through sea, land and air, but do not include cigarettes, tobacco products, spirits, e-cigarettes and preparations for smoking.
Sales tax is levied based on the selling price of the individual item itself and does not include any taxes, customs duties or other expenses, such as transportation fees, insurance fees, etc.
At the same time, as long as the seller buys and sells low-priced goods on the online shopping platform and brings the total sales of low-priced goods into my country within 12 months exceed RM500,000, they must register with the Customs Bureau.
Tax on sugary beverages rose to 50 cents per hike
For the sake of the health of the Chinese people, especially to prevent diabetes and obesity, the government has increased the tax on sugary beverages from this year, increasing it from 40 cents per liter to 50 cents. Taxes will be used to address and treat people with diabetes, including supporting diabetic centers.
my country imposes a domestic tax of 40 sen per liter on packaged sugary beverages starting from July 1, 2019, and expands to chocolate or cocoa, malt, coffee and tea (two-in-one or three-in-one) mixed sugary beverage products starting from April 1, 2022.
Targeted electricity bill allowance starting price of electricity bills for 1.2 million households
From January 1 to June 30, household users on the peninsula in my country whose monthly electricity consumption ranges from 601 kWh to 1,500 kWh will no longer enjoy a rebate of 2 sen per kilowatt-hour under the Cost Transfer Mechanism (ICPT).
Nanyang Commercial Daily reported that this means that about 1.2 million households with a monthly electricity bill of at least RM220 will increase their electricity bill by 4.2% to 6%. Affected families will pay an additional electricity bill of RM12 to RM32 per month.
As for other categories of users, the electricity bills remain unchanged. In other words, 85% of household users on the peninsula in my country are not affected, and household users of 600 kWh or RM219.80 or below can still receive a rebate of 2 cents per kilowatt-hour.
The Energy Commission said the adjustment is part of the government's implementation of targeted allowance plans. Nevertheless, the government will provide RM1.9 billion in electricity allowance to reduce the burden on users.
Poor and extremely poor families receive an additional RM1,200 in one year
In addition to the original Sumbangan Tunai Rahmah, poor and extremely poor families registered under the Social Welfare Authority (JKM) and the Charity Assistance Program (e-kasih) can also receive RM100 per month from January for 12 months to purchase necessities.
In other words, these families receive a mercy aid of up to RM2,500 (depending on the number of children) and a mercy basic aid of RM1,200, which can receive a total of up to RM3,700 in a year.
Federal Territory Entertainment Tax Reduces by at least 50%
This year, you and I will watch dramas at the Kuala Lumpur Cinema, which will be cheaper!
Entertainment taxes in federal territories (Kuala Lumpur, Labuan and Putrajaya) have dropped by at least 50% this year from the original 25%, depending on the entertainment type.
Among them, in order to support the development of the local creative industry, local performers' stage performances will be completely exempted from entertainment tax.
As for foreign performers' entertainment taxes for stage performances, cinemas, zoos, aquariums, sports and game programs, it will be reduced to 10%; the entertainment taxes for theme parks, family leisure centers and indoor playgrounds will be reduced to 5%.
In response, the New Straits Times quoted a statement from GSC Cinema CEO Gao Meili, saying that tax cuts allow ordinary people to enjoy and afford entertainment activities.
Registration fee for freshmen in public universities cannot exceed RM1,500
Starting from January this year, the admission registration fee for all freshmen of public universities is limited to RM1,500. This is also to cooperate with the National Higher Education Fund (PTPTN) to provide all eligible future students with a RM1,500 advance loan (Wang Pendahuluan Pinjaman, WPP)
In addition, even if college students cannot pay tuition during the start of school, the school cannot restrict students from registering for courses, but allows students to pay the fee after registration.
Prime Minister and Finance Minister Anwar emphasized when submitting the 2024 Budget that he does not allow students from poor families to prevent them from studying in college because they cannot pay tuition fees.
He also directed the authorities to provide assistance to students who face difficulties in paying tuition fees.
Women return to the workplace for up to 12 consecutive months of tax exemption
Tax benefits for women returning to work will be extended until December 31, 2027.
Under the relevant measures, women returning to work are eligible for up to 12 consecutive months of income tax exemption. The exempted income tax is employment income for the taxable year from 2025 to 2028.
Any woman who receives applications from TalentCorp Malaysia between January 1, 2024 and December 31, 2027 and who returns to the workplace after at least two years of career interruption are eligible for this benefit.
