DHP Radio, Malaysia – Starting July 1, Malaysia’s expanded service tax kicks in—but don’t worry, your savings and current account fees are safe. The government says basic banking stays tax-free.
Banking groups like ABM, AIBIM, and MIBA confirm: both conventional and Islamic banking services tied to basic accounts won’t be hit with the new 8% tax. This includes the everyday services the average Malaysian relies on.
So what will be taxed? Anything fee- or commission-based. Think investment advice, certain financing services, and other premium offerings. But it’s a slow rollout—banks will phase in the charges, and you’ll hear directly from them.
The goal? Raise an extra USD 1.06 billion this year alone. The move is part of a broader tax revamp. But for now, your basic cash stays untouched.
