The government of Malaysia has announced that service tax will increase from the 6% rate at present to 8% next year. This will apply to vehicle servicing in terms of labour charges, which will will increase as a result, but not the parts used in the course of servicing.
As such, the increase to 8% service tax applied to labour charges will likely result in higher overall vehicle servicing costs when the new rate applies next year.
While the increase in service tax will be applied in a broader scope, it will however not be applied to services for food and beverage, telecommunications, vehicle parking and logistics, as announced by finance minister and prime minister Datuk Seri Anwar Ibrahim.
The post Budget 2024: Service tax to go up from 6% to 8% in 2024 – car service labour charges to cost more appeared first on Paul Tan's Automotive News.
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