The Malaysian government is expected to introduce five new taxes in the 2025 Budget, aimed at promoting healthier lifestyles and sustainable living. As reported by Utusan Malaysia, these taxes include the unhealthy food tax, carbon pricing tax, inheritance tax, high-value goods tax (HVGT), and an Artificial Intelligence (AI) tax.

The unhealthy food tax, prompted by rising obesity rates revealed in the 2023 National Health and Morbidity Survey, will target foods high in fat, sugar, and calories. According to UniSZA's Dr. Farah Roslan, this tax, alongside the existing sugar tax, will discourage unhealthy food consumption and fund nutrition education programmes.

The carbon pricing tax supports Malaysia's climate goal of achieving net-zero emissions by 2050. UKMs Dr. Mustazar Mansur explained that it could be implemented through an emissions trading system (ETS) or a direct carbon tax, similar to those used successfully in 75 countries.

The inheritance tax aims to prevent the accumulation of wealth within families, reducing inequality, while the HVGT will generate revenue from high-income individuals buying luxury goods. The AI tax is intended to foster growth in high-tech industries, boosting the digital economy.

The governments broader aim is to create a more progressive tax system, with the potential expansion of e-invoices to improve tax collection. These measures aim to promote sustainable growth, healthier lifestyles, and economic equity in Malaysia.

Source: Utusan Malaysia