Malaysia to Expand Services Tax From July 1 to Trim Deficit (1)

Malaysia is expanding its sales and service tax to include the construction and financial services sectors effective July 1, according to the Finance Ministry.

The move is one of the key measures for Malaysia to narrow its fiscal deficit target to 3.8% of gross domestic product, from 4.1% the previous year. The widening of the tax base will also apply to non-essential items, including premium imported goods, in addition to commercial services.

“The addition to this sales tax helps in the improvement of the public sector especially in increasing cash aid, reinforcing public amenities as well as services,” Second Finance ...