The Royal Malaysian Customs Department (RMCD) announced that it is considering a proposal to increase the service tax rate to 8% from the current 6% and expand the service tax scopeāeffective 1 March 2024. The service taxes increase a part of the Budget for 2024, and the scope of the service tax will include various additional services such as brokerage and underwriting services, karaoke centers, and logistics services. Under the proposal, specific taxable services, such as food and beverage, telecommunication, vehicle parking space, and logistic services, will remain subject to the current 6% service tax rate. Credit cards and charge cards will continue to be taxed at RM25 per card per year. Furthermore, payments received or invoices issued before 1 March 2024 for taxable services to be provided from 1 March 2024 to 31 August 2024 will be taxed at the existing 6% rate.
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