{
  "id": 12349338,
  "title": "World Bank urges Malaysia to expand tax revenue without raising rates in Budget 2027",
  "url": "https://urgent.news/2026/10/06/world-bank-urges-malaysia-to-expand-tax-revenue-without-raising-rates",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-06T09:48:00.000Z",
  "source": {
    "name": "The Vibes",
    "slug": "the-vibes",
    "url": "https://www.thevibes.com/articles/news/128059/world-bank-urges-malaysia-to-expand-tax-revenue-without-raising-rates-in-budget-2027"
  },
  "original_language": "en",
  "account": "The World Bank has urged Malaysia's government to focus on boosting tax revenue in Budget 2027 without increasing tax rates. Dr Apurva Sanghi, the World Bank's Lead Economist for Malaysia, emphasized that increasing tax revenue is crucial as the country's tax revenue has declined relative to its Gross Domestic Product (GDP).\n\nSanghi suggested several ways to enhance revenue mobilization without raising tax rates. One approach is to lower the income threshold for higher individual marginal tax rates, which currently is relatively high compared to other countries. Lowering this threshold could increase revenue without raising the tax rate.\n\nAnother potential strategy is to simplify the corporate income tax structure for small and medium enterprises (SMEs) by consolidating multiple tax rates into a single preferential rate. Additionally, the government should phase out special tax treatment when SMEs grow beyond the SME threshold to avoid a \"tax cliff\" that discourages SMEs from formal expansion.\n\nSanghi also recommended increasing the assistance amount per recipient in existing social protection schemes like the Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR). While coverage of these programs has expanded, the adequacy of benefits remains an issue as the benefits are spread thin across many recipients. Increasing the benefit per recipient could be considered in Budget 2027.\n\nLastly, Sanghi proposed extending coverage under the Employment Insurance System (EIS) to gig workers, possibly through government-matching grants to encourage participation. This would strengthen social protection for senior citizens as Malaysia approaches aging nation status.",
  "summary": "BUDGET 2027 must focus on boosting national tax revenue without raising tax rates, including reviewing the income threshold for higher marginal individual income tax rates, the World Bank has advised. World Bank Lead Economist for Malaysia Dr Apurva ...",
  "key_points": [
    "World Bank urges Malaysia to boost tax revenue without raising rates in Budget 2027.",
    "Reduce income threshold for higher individual marginal tax rates to increase revenue.",
    "Simplify corporate income tax for SMEs and phase out special tax treatment at SME threshold."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Malay Mail",
        "title": "Ahead of Budget 2027, World Bank tells Putrajaya to raise revenue without raising rates",
        "url": "https://urgent.news/2026/10/06/ahead-of-budget-2027-world-bank-tells-putrajaya-to-raise-revenue",
        "published": "2026-10-06T10:34:25.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}