PETALING JAYA: Logistics companies and certain groups will continue to enjoy subsidised diesel but other users will have to pay a higher price as part of the government's plans to restructure fuel subsidies.
Prime Minister Datuk Seri Anwar Ibrahim said the government currently pays RM1.60 per every litre of diesel to cap the price at RM2.15 per litre.
Total allocations for Budget 2024 come to RM393.8bil , with 42.3% going to Finance, Education and Health Ministries.
RM2.8bil for road and bridge repairs
A total of RM2.8bil has been allocated under Budget 2024 to repair roads and bridges, with RM300mil for G1 to G4 contractors.
A sum of RM100mil has been allocated to upgrade street lamps across the country and RM50mil to address accident prone-areas, among them installing smart traffic lights at Federal roads to reduce accidents.
Service tax up 2% to 8%
The government plans to raise service tax from 6% to 8% but this will not include services such as food, beverages and telecommunications.
The government will also expand the scope of taxable services to include logistics, brokerage, underwriting and karaoke services.
Luxury goods tax of up to 10%
The government would introduce high value goods tax for luxury items at the rate of between 5% and 10%. It did not say if higher-end cars would come under this category, although it should. See subsequent update.
