As the new year approaches, Budget 2024 that was announced late last year will be implemented and this is crucial as it would affect us Malaysians. With that said, here are 5 highlights from Budget 2024 that would impact Malaysians the most.
5 highlights from Budget 2024 that would impact Malaysians the most
- Service tax increasing from 6% to 8%
According to The Millennial Finance on TikTok, it was said that the service tax will be increasing from 6% to 8%, and this is extended to logistics and brokerage services. This would mainly affect Malaysians who trade and invest with the help of a broker. However, it’s worth noting that the service tax increase will not be implemented in the F&B industry, as well as telco services.
- Chicken and egg price ceilings to be removed
For those who are unfamiliar, a price ceiling is a government-imposed limit on how high a price can be charged for products, goods or services. The purpose of a price ceiling is usually to protect consumers from paying excessively high prices. With the price ceilings removed, Malaysians can expect to see a price increase on eggs in the near term, but the price of chicken may remain the same as it is below the price ceiling set.
Source: Polina Tankilevitch (Pexels)
- Sports equipment and activities tax relief up to RM1,000
Unlike the previous years where Malaysians can only enjoy tax relief for sports activities under the lifestyle category, a new tax bracket has been introduced to Malaysians. This new tax bracket would allow Malaysians to spend up to RM1,000 for any sports equipment and activities. The introduction of this new tax relief could help kill two birds with one stone, enabling Malaysians to save up some money and encourage them stay fit!
Source: Pixabay
- Targeted subsidies for petrol and electricity
Starting from 2024, Malaysians will most likely see targeted subsidies rolled out, especially for petrol and electricity. However, prime minister Anwar Ibrahim revealed that these targeted subsidies would only affect the top 10% of Malaysians and foreigners, so most Malaysians will likely be able to still enjoy the subsidies.
Source: Skitterphoto
- PTPTN repayment discounts
For those that applied for the PTPTN loan for their studies, the government is now offering a 10% discount for those who decide to pay half or their entire loan amount. However, it’s worth noting that a 15% discount would be applied if auto-debit is set up to repay the loan amount every month.
Source: Andrea Piacquadio (Pexels)
As we usher into the new year, it’s important to set goals and keep track of our finances! So, if you come across this article, this is your sign to keep track of your finances!
Special thanks to The Millennial Finance for the highlights.
Watch the full video below:
@themillennialfinance Higher tax revenues, lower subsidies. Sounds bad but if executed well, I think this is the right move for Malaysia. #budget2024 #personalfinancemalaysia #malaysia #sst #subsidies
♬ original sound – Emir | The Millennial Finance – Emir | The Millennial Finance
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