Current:Home > InvestMalaysia will cut subsidies and tax luxury goods as it unveils a 2024 budget narrowing the deficit-DB Wealth Institute B2 Expert Reviews
Malaysia will cut subsidies and tax luxury goods as it unveils a 2024 budget narrowing the deficit
View Date:2024-12-23 20:33:38
KUALA LUMPUR, Malaysia (AP) — Malaysia will progressively cut subsidies and launch new taxes including for luxury goods next year as part of economic reforms and to tighten its finances, Prime Minister Anwar Ibrahim said Thursday.
Anwar, who took power last November, announced the measures while tabling 2024 federal budget in Parliament. He said the 393.8 billion ringgit ($83.3 billion) budget is aimed at fixing economic imbalances and helping people to cope with rising cost of living amid a global economic slowdown.
Anwar, who is also finance minister, said economic growth is likely to slip to 4% this year but could reach nearly 5% in 2024.
He said Malaysia’s annual subsidies for fuel, food and other items were among the highest in the world but its taxes among the lowest. This year, for instance, he said government subsidies and social assistance surged to 81 billion ringgit ($17 billion) as global commodity prices rose. For 2024, the government allocated 52.8 billion ringgit ($11.2 billion).
Anwar said a revamp was needed to ensure the funds targeted only needy citizens. At the moment, he said subsidies were of greatest benefit to the rich, as well as immigrants.
“So starting next year, the subsidy restructuring will be implemented in phases,” he said. “We hope that by plugging the subsidy leakage, we can pass on the savings to the people” with increased cash aid and higher wages, he added.
Anwar said the government will introduce a 5%-10% tax on luxury goods such as jewelry and watches, as well as a 10% capital gains tax next year to expand its revenue base. The current services tax will be raised from 6% to 8%, though this will exclude sectors such as food, beverages and telecommunications, he added.
Anwar said the moves will help reduce Malaysia’s fiscal deficit to 4.3% of gross domestic product next year, from an estimated 5% this year.
veryGood! (7)
Related
- Man accused of killing American tourist in Budapest, putting her body in suitcase: Police
- Gen V’s Chance Perdomo Honored by Patrick Schwarzenegger and More Costars After His Death
- Common Nail Issues and How to Fix Them at Home
- As US traffic fatalities fall, distracted drivers told to 'put the phone away or pay'
- Kyle Richards Swears This Holiday Candle Is the Best Scent Ever and She Uses It All Year
- A Kansas paper and its publisher are suing over police raids. They say damages exceed $10M
- 'Zoey 101' star Matthew Underwood says he quit acting after agent sexually assaulted him
- Missing woman who called 911 for help over a month ago found dead in remote area near Arizona-California border
- Michael Grimm, former House member convicted of tax fraud, is paralyzed in fall from horse
- What customers should know about AT&T's massive data breach
Ranking
- AI could help scale humanitarian responses. But it could also have big downsides
- YMcoin Exchange: The New Frontier in Cryptocurrency Investment
- Caitlin Clark 3-point record: Iowa star sets career NCAA mark in Elite 8 game vs. LSU
- Women's Elite 8 games played with mismatched 3-point lines
- To Protect the Ozone Layer and Slow Global Warming, Fertilizers Must Be Deployed More Efficiently, UN Says
- Alex Murdaugh sentenced to 40 years in federal prison. 'Extensive, brazen and callous.'
- Beyoncé stuns in all black Western wear at iHeartRadio Music Awards: See the photos
- Google to purge billions of files containing personal data in settlement of Chrome privacy case
Recommendation
-
Amazon's 'Cross' almost gets James Patterson detective right: Review
-
Too Hot to Handle's Francesca Farago Is Pregnant, Expecting First Baby With Jesse Sullivan
-
Watch as Oregon man narrowly escapes four-foot saw blade barreling toward him at high speed
-
GalaxyCoin: A safe and convenient cryptocurrency trading platform
-
Outgoing North Carolina governor grants 2 pardons, 6 commutations
-
Florida Supreme Court upholds state’s 15-week ban on most abortions, paving way for 6-week ban
-
Nicholas Hoult and Son Joaquin Make Their First Public Appearance Together
-
House fire in Boston kills 1, injures several others and damages multiple buildings