Economics
Malaysia to Start Sales Tax in September to Shore Up Budget
- Cabinet agrees to cancel KL-Singapore high-speed rail, MRT3
- Spending cuts planned as liabilities exceed 1 trillion ringgit
Photographer: Sanjit Das/Bloomberg
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Malaysia will implement a new sales tax in September to replace the consumption levy that it’s scrapping next month as Prime Minister Mahathir Mohamad looks for ways to temper concerns on the nation’s budget.
The government is studying a 10 percent rate for the sales and services tax, he told reporters in Putrajaya after a Cabinet meeting. Ministers also agreed to cancel a proposed multibillion-dollar high-speed railway link to Singapore and the third phase of a mass rapid transit line in Kuala Lumpur, he said.