Budget Proposals




Budget Proposals

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16
 


As a continuous efforts to promote healthy lifestyle and to reduce the social ills due to consuming alcoholic beverages and smoking, it is proposed that the import and excise duties on the following products be increased from Budget Day.

  1. CIGARETTES AND TOBACCO PRODUCTS

TARIFF

CODE

DESCRIPTION

PRESENT
IMPORT DUTY

(RM)

PROPOSED RATE

(RM)

24.02 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
2402.10 000 - Cigars, cheroots and cigarillos, containing tobacco

138/kg

180/kg

2402.20 - Cigarettes containing tobacco:

 

 

2402.20 900 Other

162/kg

180/kg

2402.90 - Other:

 

 

2402.90 100 Cigars, cheroots and cigarillos containing tobacco substitutes

138/kg

180/kg

2402.90 200 Cigarettes containing tobacco Substitutes

162/kg

180/kg



TARIFF CODE

DESCRIPTION

PRESENT
EXCISE DUTY

(RM)

PROPOSED
RATE

(RM)

24.02 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
2402.20 - Cigarettes containing tobacco:    
2402.20 900 Other 28.60/kg 40/kg

 


B. ALCOHOLIC BEVERAGES

TARIFF CODE

DESCRIPTION

PRESENT
IMPORT DUTY

(RM)

PROPOSED RATE

(RM)

2106 90 490
2203.00 Compound alcoholic

31 per 100% Vol/litre

37 per 100% Vol/litre

2203.00 100 Preparations

 

 

2203.00 900 Beer made from malt:

 

 

2204.10 000 Not exceeding 5.8% vol.

74 per dal

89 per dal

2204.21 100 Other

74 per dal

89 per dal

2204.21 200 Sparkling wine:

 

 

2204.29 100 Wine

354 per dal

425 per dal

2204.29 200 Grape must with
fermentation prevented or arrested by the addition of alcohol

100 per dal

120 per dal

2204.30 000 Other wine

94 per 100% Vol/litre

113 per 100% Vol/litre

2205.10 Grape must with fermentation prevented or arrested by the addition of alcohol

100 per dal

120 per dal

2205.10 000 Other grape must

104 per 100% Vol/litre

125 per 100% Vol/litre

2205.90 000 Vermouth and other wine

93 per 100% Vol/litre

112 per 100% Vol/litre

2206.00 In containers holding 2 Iitres or less

100 per dal

120 per dal

2206.00 100 Other

100 per dal

120 per dal

2206.00 200 Other fermented beverages (e.g. cider, perry, mead)
Cider and perry

55 per dal

66 per dal

2206.00 300 Rice wine (including sake And medicated rice wine)

30 per 100% Vol/litre

36 per 100% Vol/litre

2206.00 400 Mead

98 per 100% Vol/litre

118 per 100% Vol/litre

2206.00 910 Wines obtained by the fermentation of fruit juices, other than juice of fresh grapes/vegetables

93 per 100% Vol/litre

112 per 100% Vol/litre

2206.00 990 Other
Toddy, bottled or canned

93 per 100% Vol/litre

112 per 100% Vol/litre

2207.10 000 Other

93 per 100% Vol/litre

112 per 100% Vol/litre

2207.20 100 Undenatured ethyl alcohol

56 per 100% Vol/litre

67 per 100% Vol/litre

2207.20 900 Ethyl alcohol, denatured
Other

14 per dal

17 per dal

2208.20 - Spirits obtained by distillingÖ

 

 

2208.20 100 Brandy

17 per dal

20 per dal

2208.20 900 Other

489 per dal

587 per dal

2208.30 000 Whiskies

489 per dal

587 per dal

2208.40 000 Rum and tafia

470 per dal

564 per dal

2208.50 000 Gin and geneva

463 per dal

556 per dal

2208.60 000 Vodka

465 per dal

558 per dal

2208.70 Liqueurs and cordials:

461 per dal

553 per dal

2208.70 100 Liqueurs and similar beverages not exceeding 57% vol.

82 per 100% Vol/litre

98 per 100% Vol/litre

2208.70 900 Other

60 per 100% Vol/litre

72 per 100% Vol/litre

2208.90 100 Samsu (incl. medicated)

31 per 100% Vol/litre

37 per 100% Vol/litre

2208.90 200 Arrack & pineapple spirit

31 per 100% Vol/litre

37 per 100% Vol/litre

2208.90 300 Liqueurs, bitters

82 per 100% Vol/litre

98 per 100% Vol/litre

2208.90 910 Other spiritious beverages

95% or RM2.30 w.i.t.h.

114% or RM2.76 w.i.t.h.

2208.90 990 Other

60 per 100% Vol/litre

72 per 100% Vol/litre

 


17
 

As a measure to reduce gambling activities, it is proposed that the duties on gambling activities be increased as follows:-

  1. the gaming tax be increased from the present rate of 7% to 8%;
  2. the pool betting duty be increased from the present rates of between 5% and 11.5% to 10% and 12%; and
  3. the present casino win duty rates of between 22% and 25% be standardized and imposed on a single rate of 25%.

The new rates will be effective from 1 November 1998.


18
 
Present Position

Vintage cars refer to those cars that had been registered before 1941 while classic cars are those which are more than 25 years of age. The ownership of vintage cars is a unique hobby and generally they are used sparingly. With respect to road tax treatment, vintage cars are subject to the same road tax rate as applied to classic cars which is 20% of the prevailing rate.

Proposal

In view of the limited usage of vintage cars and the cost of maintenance is high, it is proposed that the road tax for vintage cars be reduced from 20% to 10% of the prevailing rate.

The proposal is effective from 24 October 1998.


19
  Present Position

Research shows that producers of crude palm oil and crude palm kernel oil enjoy a windfall profit due to high selling prices and the depreciation of the Ringgit.

Proposal

As a measure to increase Government revenue, it is proposed that a windfall profit levy be imposed on crude palm oil and crude palm kernel oil when their prices exceed RM2,000 per ton in the following manner:

 
Price Range Rate of Levy
(RM/ton) (RM/ton)
£ 2,000 Nil
> 2,000 - < 2,050 The difference between the selling price and 2,000
3 2,050 50



This proposal will be effective from 1 January 1999.

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