This is in response to the government’s implementation of an increase in service tax to 8% from 6%, and its scope expanding to cover logistics services, which will be taxed 6% come April 1 this year.
KUALA LUMPUR (March 15): Master Builders Association Malaysia (MBAM) urges the government to provide tax exemptions for intragroup services in logistics and maintenance and repair services, and not only for the same taxable services under the logistics services. Intragroup services are any services provided by related companies, and these services should be tax exempted.
This is in response to the government’s implementation of an increase in service tax to 8% from 6%, and its scope expanding to cover logistics services, which will be taxed 6% come April 1 this year.
“The increase, especially coupled with the broader inclusion of logistics services, poses a significant threat to the construction industry and its stakeholders. The added financial burden on consumers will inevitably result in an upsurge in the cost of goods, affecting the affordability and accessibility of construction materials,” said MBAM president Oliver Wee (pictured) in a statement.
“Members of the MBAM fear that such a tax hike could impede economic growth. The construction sector, being a vital pillar of Malaysia’s economy, plays a pivotal role in creating jobs and fostering infrastructure development. Any hindrance to its progress will have far-reaching consequences on employment rates and national prosperity.”
Additionally, Wee hopes that the government will consider business-to-business exemption for maintenance and repair services, which is currently not available.
“This is to avoid multi-tier tax on the same products and services. If the government can consider accepting our appeal, this will help to assist our members and the construction industry to get some much needed relief with the current service tax increases,” he said.
By Wong King Wai. 15 March 2024
Source: Edge Prop.https://www.edgeprop.my/content/1908840/mbam-urges-govt-tax-exemptions-intragroup-services-within-logistics-services.18 March 2024.
Minelog Expands Fleet with 8 New Trucks to Enhance Service Quality and Sustainability Minelog is proud to announce an expansion of our fleet with the addition of 8 state-of-the-art trucks, including 5 Shacman and 3 Actros. The newly acquired vehicles are equipped with powerful Euro 5 engines, a step forward in reducing emissions, improving fuel efficiency, and making a positive impact [...]
Top Logistics Technology Trends Reshaping the Industry in 2024 [Part 2 of 2] 4. Internet of Things (IoT) in Logistics 2024: Enhanced Visibility and Efficiency The Internet of Things (IoT) is another technology that is reshaping the logistics landscape. By attaching sensors, tags, and trackers to shipments, pallets, and containers, companies can achieve real-time tracking of goods throughout the supply [...]
Top Logistics Technology Trends Reshaping the Industry in 2024 [Part 1 of 2] The logistics industry has always been at the forefront of technological innovation, but 2024 is shaping up to be a year of unprecedented transformation. In this deep dive, we explore the top logistic... The logistics industry has always been at the forefront of technological innovation, but 2024 [...]
Scroll To Top