KUALA LUMPUR — Malaysia will introduce a new dividend income tax on individuals and expand the target of its sales and services tax next year, Prime Minister Anwar Ibrahim announced on Friday, as the government expects record high expenditure in 2025.
In a draft budget tabled to the parliament on the day, the government proposed a total expenditure of 421 billion ringgit ($98 billion) for next year, a record figure and up 7% from the 393.8 billion budgeted for 2024, making 20.2% of the country’s gross domestic product. The increase is primarily due to higher emoluments and retirement charges, as well as higher debt service charges.
