Government to take in RM800 million from service tax — Expert

0

PETALING JAYA: The government is likely to rake in some RM800 million next year from the one per cent increase in service tax which commences January 2011, says a tax expert.

Council Member of the Chartered Tax Institute of Malaysia, Adrian Yeo, said eventhough the hike was minimal, it would bring additional income for the government especially with the postponement of the goods and services tax (GST).

As for service tax on paid broadcasting services, the impact will be minimal, the chartered accountant told Bernama after a seminar on the 2011 Budget organised by Tunku Abdul Rahman College here yesterday.

Yeo, a partner at accounting firm Adrian Yeo & Co, was one of the speakers at the event which looked at the effects of the budget on small and medium entrepreneurs and individuals.

The government on Friday announced that the service tax on all taxable services would be raised to six per cent from five per cent currently while a six per cent service tax would be imposed on paid television broadcasting services.

He said while many opportunities for SMEs have been provided in the 2011 Budget, it was evident that the government’s focus was rather towards the success of people.

The government can play a marginal role in the success of individuals, and in this budget, they have addressed the people in rural areas, younger people who have started to work as well as improving education and skills for the rakyat, Yeo said.

As for incentives, he said they were aimed at inducing private investments in sectors like tourism and education.—Bernama