The prime minister said the government will introduce a 2 per cent tax on dividends greater than RM100,000 annually for individuals, effective the 2025 assessment year.
Anwar said the proposal was to allow the Inland Revenue Department (LHDN) to expand its revenue base from just salaried workers and include the capital class.
However, he said exemption could be given for dividends from the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB0, unit trusts, and foreign dividends.
Saying the special grant for Sarawak and Sabah had not been increased since 1969, Anwar pointed out that his government finally raised this to RM140 million to RM300 million this year. Next year, Anwar says this will be doubled to RM600 million.
Subsidies for boarding schools will be retargeted to eliminate financial assistance for the country’s top 15 per cent of income earners, with Anwar also saying that similar reforms will be made to the country’s public healthcare system.
“High-income groups should contribute to better healthcare services in government hospitals. The savings achieved can be used to fund medical devices for poor patients and to upgrade equipment in public hospitals and clinics.”
The government will proceed with rationalising the subsidy for RON95 petrol by the middle of 2025, but Anwar did not provide details of this plan beyond pledging that this would not affect 85 per cent of Malaysians.
The prime minister indicated that the government will be expanding taxation on "luxury" goods, giving salmon and avocado as examples.
Anwar is expected to present a budget of RM421 billion, the largest ever in the history of the country.
The prime minister began tabling at 4pm, thanking lawmakers for approving the constitutional amendment on the country's citizenship laws yesterday before he began.
Prime Minister Datuk Seri Anwar Ibrahim will table Budget 2025 today, his third federal spending plan since leading an alliance dubbed the “national unity government” to power after the 15th general election.
Wearing a white Baju Melayu, Anwar left the Treasury around 3.15pm and arrived in Parliament just before 4pm, where he is scheduled to present the Budget.
Anwar, who is also the finance minister, carried a black file bag with a songket pattern embroidered with gold thread, containing Budget 2025 documents to Parliament.
The songket weave on the bag was produced by local designer Adiguru Rasiah Yusoff from Kampung Tikat Penambang, Kelantan, while the bag was designed by Chew Kai Hung from Penang.
In addition to the songket weaving on the outside, the bag also incorporates a sari combination for the inner lining.
The finance minister is expected to focus on increasing development spending while managing falling revenue and the fiscal deficit, amid the country’s economic recovery underpinned by a rising ringgit backed by his financial reforms.
Malay Mail will be updating this article with his announcements of new policies and initiatives... and maybe new taxes?
The tabling is scheduled for 4pm. Here’s where you can watch it “live”:
While waiting, read our curtainraiser for this year’s budget:
