Existing taxes key to 2027 Budget, expect few major changes: Expert
KUALA LUMPUR: Malaysia is likely to focus on improving tax collection and fine-tuning existing taxes rather than introducing major new levies in 2027 Budget, according to KPMG senior tax policy adviser Dr Veerinderjeet Singh.
Malaysia's 2027 Budget is expected to focus on improving tax collection and refining existing taxes rather than introducing major new levies, according to KPMG senior tax policy adviser Dr Veerinderjeet Singh. The government aims to enhance enforcement, leverage tax agency analytics, and broaden tax bases to bolster fiscal consolidation efforts, with the ultimate goal of raising the tax-to-GDP ratio towards 15 per cent.
While a few major tax changes are not anticipated, efforts to increase personal, corporate, and indirect tax bases are likely to be pursued, alongside measures to reduce cascading effects and business costs under the sales and service tax. GST reinstatement and wider e-invoicing participation are also expected to play a role in tax collection improvement, although a carbon tax and excise duty increases remain on the policy agenda, potentially delayed until 2028 or later.
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