YB Tuan Lim Guan Eng, Minister of Finance tabled the National Budget 2019 on Friday, the 2 November 2018 in Parliament.
Budget provides a total allocation of RM314.5 billion (compared to RM290.4 billion in 2018) with RM259.8 billion allocated for operating expenditure and RM54.7 billion for development expenditure.
Some Budget 2019 highlights include tax rate for SMEs will be reduced to 17 per cent from 18 per cent, targeted petrol subsidies, an increased minimum wage along with many perks for first-time homeowners and the B40.
As expected, some new taxes were introduced as well, including on sugary drinks, overseas travel and casino licences.
1. Government will introduce a credit system for sales tax deductions from 1 January 2019 to avoid double-taxing and lower business costs.
2. Government proposes that services that are imported be imposed a service tax from 1 January 2019 to ensure fair competition for local service providers.
3. Government will launch a special Voluntary Disclosure Programme for taxpayers to declare whatever income not reported.
4. Under SST, nearly 10 times more items exempted from sales tax.
5. Departure levy proposed for all international outbound air passengers from 1 June 2019.
6. The government has allocated RM210 million from 2019 to 2021 to encourage the move to Industry 4.0.
7. The tax rate for companies with a taxable income of up to RM500,000 and SMEs with a paid up capital of less than RM2.5 million will be reduced to 17 per cent from 18 per cent.
8. Minimum wage to increase to RM1,100 nationwide starting 1 January 2019.
9. Government to introduce excise duty at 40 sen per litre on two categories of sugary drinks, starting 1 April 2019
10. RM2 billion proposed to encourage investment in green technology industries.
Please click HERE for National Budget Speech 2019.
Please click HERE for further information on National Budget 2019.