Tax Budget 2023 - Indirect Tax

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim have proposed some changes to the income tax rates under the new Budget 2023.

Key summary on tax budget 2023 for Indirect Tax

Extension of Exemptions on Purchase of EV

• Full import duty exemption on components for locally assembled EV

Until 31 December 2027

• Full excise duty and sales tax exemptions on locally assembled CKD EV

Until 31 December 2027

• Full import duty and excise duty exemptions on imported CBU EV Until 31 December 2025

Expansion of Excise Duty and Sales Tax Exemptions on Sale, Transfer, Private Use or Disposal of Individually Owned Taxis and Hired Cars

• Excise duty and sales tax exemptions on the sale, transfer, private use or disposal of individually owned taxis and hired cars are expanded to include taxis (budget taxis, executive taxis and TEKS1M), airport taxis (budget and family) and hired cars.

• The vehicle age condition is relaxed to at least 5 years from the date of registration.

• For applications received by the RMCD from 1 March 2023.

Imposition of Excise Duty on Gel or Liquid Products containing Nicotine

• Excise duty to be imposed on gel or liquid products containing nicotine used for electronic cigarettes and vaping.

• Effective date and applicable rate yet to be announced.

Import Duty and Sales Tax Exemptions on Nicotine Replacement Therapy

• Import duty and sales tax exemptions on nicotine gum and nicotine patch for a period of 3 years.

• For applications received by the MOF from 1 April 2023 to 31 March 2026.

Import Duty and Sales Tax Exemptions on Studio and Filming Production Equipment

• Import duty and sales tax exemptions on studio and filming production equipment to providers of studio equipment, production and post- production services for a period of 3 years.

• For applications received by the MOF from 1 April 2023 to 31 March 2026.

Extension of Import Duty Exemption for BioNexus Status Company

• Import duty exemption on raw materials/ components and machinery/equipment for BioNexus Status Company to be extended for 2 years.

• For applications received by Malaysian Bioeconomy Development Corporation from 1 January 2023 until 31 December 2024.

Visit Us

Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients