Government Expects to Exceed Sales and Service Tax Revenue Target for 2024
The finance ministry is expected to exceed its initial target of RM41.3 billion in sales and service tax (SST) revenue for 2024, with the total expected to reach RM44.7 billion. This was revealed in a written parliamentary reply to Chong Zhemin (PH-Kampar), who inquired about the total SST collected last year and its comparison to the initial projections.
SST Revenue to Fund Public Health Expenses
The revenue generated from SST will fund public health expenses, including increasing the supply of SGLT-2 inhibitors for diabetes treatment and peritoneal dialysis for end-stage kidney disease patients. This is according to a written parliamentary reply to Chow Kon Yeow (PH-Batu Kawan), who asked about the total excise duty revenue from sugary drinks since the policy’s introduction and how much has been allocated for health-related purposes, particularly in the fight against diabetes.
Excise Duty on Sugary Drinks
The ministry also reported that the total excise duty collected on sugary drinks from 2019 to 2024 amounted to RM447.5 million. This revenue will be used to fund public health expenses, as mentioned earlier. The government has also allocated RM45.27 billion to the health ministry for 2025 to fund health programmes, including diabetes and obesity prevention.
History of Excise Duty on Sugary Drinks
The government first levied an excise duty of RM0.40 per litre on all ready-to-drink packaged beverages that contain more than 5g of sugar per 100ml in 2019. The tax was raised to RM0.50 last year. In October, Prime Minister Anwar Ibrahim announced an increase in excise duty on sugary drinks by RM0.40 per litre beginning in January.
Conclusion
The government’s efforts to increase revenue through excise duty on sugary drinks have been successful, with the total revenue generated from 2019 to 2024 reaching RM447.5 million. This revenue will be used to fund public health expenses, particularly in the fight against diabetes and end-stage kidney disease. The government’s commitment to prioritizing public health is evident in its allocation of RM45.27 billion to the health ministry for 2025.
Frequently Asked Questions
- What is the expected SST revenue for 2024?
The finance ministry expects SST revenue to reach RM44.7 billion, exceeding the initial target of RM41.3 billion. - How much excise duty has been collected on sugary drinks from 2019 to 2024?
The total excise duty collected on sugary drinks from 2019 to 2024 amounts to RM447.5 million. - What is the purpose of the revenue generated from excise duty on sugary drinks?
The revenue will be used to fund public health expenses, including increasing the supply of SGLT-2 inhibitors for diabetes treatment and peritoneal dialysis for end-stage kidney disease patients.