2019 Budget: Taxing it right, for a solid future

KUALA LUMPUR: The Pakatan Harapan-led government's maiden Budget comes with some tough measures in terms of taxes as expected, plans for further fiscal consolidation, as well as incentives for businesses to prosper and to bring Malaysia's economy back to a stronger footing.
Finance Minister Lim Guan Eng also announced several proposals, including the imposition of excise duty from April 1, 2019 of 40 sen a litre for two categories of ready-to-drink sweetened beverages – those containing more than 5gm of added sugar or other sweetening agent in 100ml, as well as fruit and vegetable juices with more than 12gm in 100ml.
Lim also announced a rise in the Real Property Gains Tax (RPGT) rate; higher taxes, fees and levies for the gambling sector; and the introduction of taxes for imported services including online services.
"This imposition of taxes (on imported services) will even out the competition between retail shops and online shops, especially online shops owned by foreign companies," Lim said when tabling the 2019 Budget themed 'Credible Malaysia, Dynamic Economy, Prosperous People.'
For companies and for individuals who are not citizens or permanent residents, the RPGT rate goes up to 10% from 5%.
For citizens and permanent residents, meanwhile, the RPGT rate is raised to 5% from 0%.
Taxes, fees and levies that have not gone up since 2005 wil be amended, for example the casino duty will increase to RM150 million from RM120 million, with the duty rising to 35% of gross income.
The government will also launch a special voluntary declaration scheme to give taxpayers an opportunity to voluntarily declare any income not reported for the purpose of taxation, including from offshore accounts. — Bernama