Finance Ministry: 2024 indirect tax, non-tax revenue on production, imports likely to expand 4.5pc

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KUALA LUMPUR, Oct 13 ― The indirect tax and non-tax revenue on production and imports is projected to expand further at 4.5 per cent in 2024 in tandem with the continued...

The Ministry of Finance said the expenditure for subsidies and incentives is expected to decrease by 24.8 per cent in line with the government’s move to rationalise subsidies and implement a more targeted assistance. — Picture by Ahmad ZamzahuriKUALA LUMPUR, Oct 13 ― The indirect tax and non-tax revenue on production and imports is projected to expand further at 4.5 per cent in 2024 in tandem with the continued efforts to increase revenue collection and strategies to implement a wider tax base.

“Efforts to enhance social protection among all self-employed workers, including those in the informal sector, may also attract more participation from youth to choose self-employment as the main source of income.“As a result, the share of mixed-income to GDP is projected to rise to 15.5 per cent,” it said.

Hence, the MoF said the share of compensation of employees to GDP is projected to improve to 33.1 per cent in 2024 compared to 32.4 per cent in 2023. The MoF said employers must also consider paying higher wages as a source of growth, which would alleviate the prolonged structural issues in the labour market and contribute to higher business growth.

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