Budget 2023: Here’s what you need to know

Malaysia’s Budget 2023 was tabled in the Dewan Rakyat this evening.

The revised national budget sees an allocation of RM388.1 billion – the largest to be tabled in Parliament.

The figure exceeded the budget of RM332.1 billion tabled by the previous government last year, just before the Nov 19 General Election.

Here are some of the key points from Budget 2023.

  • No plans to reintroduce Goods and Services Tax (GST).
  • Luxury goods tax on items such as watches and fashion products to be introduced.
  • Government to impose excise duties on liquid nicotine used in e-cigarettes and vapes.
  • Electricity tariffs will be maintained for domestic users and small, and medium enterprises (SMEs).
  • More dividends for lower-income Amanah Saham Bumiputera (ASB) contributors.
  • Civil servants will receive RM180 per month in childcare subsidy for households with income of RM7,000 and below.
  • To encourage 130,000 women to return to the workforce after giving birth, RM290 million in salary-matching grants will be given out.
  • Bankrupts with debts of less than RM50,000, and who meet specific criteria, will be released from bankruptcy, starting March 1, a move that will benefit 130,000 people.
  • RM1.2 billion allocated to repair 400 dilapidated clinics, and 380 schools, nationwide.
  • Government to waive driving examination fees for taxi, bus, e-hailing, and B2 motorcycle licences.
  • Income tax for individuals will be reduced to 2 per cent (for those earning between RM35,000 and RM100,000 annually). High-income earners (earning between RM100,000 and RM 1 million annually), however, will be imposed with an increase of between 0.5 and 2 per cent in taxes.
  • Employees Provident Fund (EPF) contributors, aged 40-54, with savings of less than RM10,000 in Account 1, will receive RM500 from the government. This will benefit two million EPF contributors.
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