On 2 November 2018, the Malaysia Minister of Finance tabled the 2019 National Budget.
The key indirect tax proposals are as follows:
Currently, there is no excise duty levied on sweetened beverages. However, it has been proposed by the Malaysia Government that beginning on 1 April 2019, excise duty will be introduced on sweetened beverages that are being manufactured in the form of ready to drink. The excise duty rate of MYR 0.40 per litre will be charged on the sweetened beverages.
Currently, there is no service tax levied on prescribed services supplied by foreign service providers. However, it has been proposed by the Malaysia Government that service tax will be imposed on the taxable services supplied by both local and foreign service providers.
It has been proposed that foreign service providers providing online services to Malaysia consumers will be required to register for service tax with Malaysia Customs and charge service tax.
Currently, the importation of bicycles (other than racing bicycles and bicycles designed to be ridden by children) falling under the HS tariff code 8712.00.30 00 are subject to import duty at the rate of 25%. Effective from 1 January 2019, import duty rate is proposed to reduce from 25% to 15% on such bicycles.
Director, Malaysia, PwC Asia Pacific Customs and Trade
Tel: +60 (3) 2173 3724
Director, PwC Malaysia
Tel: +603 2173 1701
Tel: +60 (3) 2173 1669