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Finance Ministry: Govt always takes cautious approach when reforming tax system

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KUALA LUMPUR, March 19 — The government has always taken a cautious approach to reforming the national tax system, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He...

Finance Minister II Datuk Seri Amir Hamzah Azizan said that although there is a need to grow the country’s revenue, the government needs to balance that desire by taking into account the need to protect the people from excessive burdens. — Bernama picKUALA LUMPUR, March 19 — The government has always taken a cautious approach to reforming the national tax system, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

“An example of tax reform is the increase in the service tax rate from six per cent to eight per cent effective from March 1, 2024, which focuses on activities related to discretionary services and activities between businesses ,” Amir Hamzah said during a question and answer session at the Dewan Negara today.He said the increase in service tax does not involve services that are a basic need and part of the people’s lifestyle.

“The government will remain committed to fiscal consolidation in the medium term and special focus will be given to ensure fiscal sustainability through sustainable revenue generation and expenditure effectiveness through increased efficiency, reducing leakage and waste,” Amir Hamzah said.

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