Budget 2024 is the largest budget ever proposed by any government in Malaysia's history at RM393.8 billion. The budget also introduces measures to increase government earning by implementing taxes like the introduction of the Capital Gains Tax, the implementation of High Value Goods tax, and an increase in service tax.

According to a report by accounting firm Crowe, Malaysia remains one of the countries with the lowest amount of taxes collected as a percentage of Gross Domestic Product in the ASEAN region.

While we don't directly have to worry too much about these taxes, here's what Budget 2024 has in store for us individuals, the everday Malaysians:

1. The tax relief of RM1,000 for medical treatment expenses for self, spouse, and child will now include dental examination and treatment expenses from dental practitioners registered with the Malaysian Dental Council.

2. Lifestyle Income tax relief will include self-improvement courses

3. New tax relief: Sports Equipment and Activities to be introduced with RM1,000 tax relief effective YA 2024. Purchase of sports equipment and gym membership fees were previously lumped under Lifestyle income tax relief, so yay to more tax relief!

4. Up-skilling and self-enhancement courses with a tax relief of RM2,000 will be extended a further 3 years. Get your studying in. No word on how self-improvement and self-enhancement is differentiated yet.

5. Full medical exam for parents now included in the income tax relief for medical treatment, special needs, and carer expenses for parents.

6. The tax relief on expenses related to installation, rental, purchasing including hire-purchase equipment or subscription fees for EV charging facilities will be extended for a period of four (4) years from YA 2024 to YA 2027.

7. Women returning to work after a career break of at least two (2) years from the date of application to Talent Corporation Malaysia Berhad will be eligible for income tax exemption on employment income received from YA 2025 to YA 2028.

8. Income tax exemption for childcare allowance increased from RM2,400 to RM3,000.

9. The preferential tax rate of 15% on employment income for five (5) consecutive years received by an individual participating in the Returning Expert Programme will be extended for applications received by Talent Corporation Malaysia Berhad from 1 January 2024 to 31 December 2027.

10. Service tax rate increase from 6% to 8%. This will exclude food and beverage and telecommunication services, which will remain at 6%. This increase can be significant as some services that we use will face this increase for example hotels, car workshops, or property agents will need to charge 8% now. It might not be as crucial as food, Wi-Fi, and phone data but the expenses will add up.

11. High-Value Goods tax to be introduced at 5% to 10% depending on the value of the item. This includes jewellery and watches.

12. Taxable services will be expanded to include logistics (Pos laju to be more expensive now?), brokerage (for trading shares), underwriting (banking fees), and karaoke services. Strange how karaoke was singled out.

13. Tax incentive for Angel Investors is exteded for 3 years for investments made from 1 January 2024 to 31 December 2026.

14. The tax incentive for participating in Equity Crowd Funding will include investments made by individual investors through Limited Liability Partnership nominee companies and will be extended for a period of three (3) years for investments made from 1 January 2024 until 31 December 2026.

15. RM10 million to be used to protect consumers from uncontrollable price increases. Like the increase of grains due to the war.

16. RM50 million benefit provided for more than 400,000 housewives registered under e-kasih.

17. Rahmah cash donation increase from RM8 billion to RM10 billion.

18. Purchasers of EV Motorcycles will receive a RM2,400 rebate if they have an income of less than RM120,000 (RM10k a month salary).

19. SOCSO monthly salary ceiling increase from RM5,000 to RM6,000.

20. EPF i-Sayang programme will allow wives to transfer 2% of their EPF contributions to their husbands.

21. EPF Flexible Account will be introduced as a new account to allow accessibility to members at any time in order to strengthen retirement savings.

22. RM500 amount will be awarded to youths who have successfully volunteered with bodies recognised by the Government in order to inculcate the spirit of volunteerism amount youths aged 18 to 20 years.

23. Discounts will be given for PTPTN loan repayment from 14 October 2023 until 31 March 2024 at the following rates: 10% discount on balance of the debt for full
settlement of the loan; 10% discount on payment of at least 50% of
the remaining debt in a single payment receipt; and 15% discount on payment by salary deduction or scheduled direct debit.

24. Excise duty on sugar sweetened beverage increase from RM0.40 per litre to RM0.50 per litre. This will probably have an effect on the price of canned and boxed drinks.

25. Full exemption on entertainment tax on local performances in Federal Territories. This could mean cheaper concert or event prices, but that's up to organisers.

26. International artists tax has reduced from 25% to 10% (including movie screenings) in Federal Territories. It's now up to organisers to see that the savings they receive are also passed on to consumers.