Malaysia legislation

Section 38

of PUBLIC FINANCE AND FISCAL RESPONSIBILITY ACT 2023

Section 38

(2)

The tax expenditure statement shall contain the following information:

(a)

actual tax expenditure and estimated tax expenditure;

(b)

actual tax expenditures against the estimated tax expenditure;

(c)

any changes in tax policies and tax legislation; and

(d)

other relevant information relating to tax expenditure.

(3)

The tax expenditure statement shall be used for the purpose of assessing revenue foregone arising from changes in the tax policy of the Government, including but not limited to exemption, remission, allowance, preferential tax rate, deferral or offset, that reduces tax obligation to achieve its intended objective.

FIRST SChEdULE

[Subsection 8(2)]

Fiscal Objectives and Quantified Values

Fiscal Objectives

Quantified

Values

Annual development expenditure incurred as a percentage of gross domestic product

≥ 3%

Fiscal balance as a percentage of gross domestic product

≤ -3%

Debt level as a percentage of gross domestic product

≤ 60%

Financial guarantee as a percentage of gross domestic product

≤ 25%

Annual development expenditure incurred as a percentage of gross domestic product

Quantified Values

Public Finance and Fiscal Responsibility 29

SECONd SChEdULE

[Sections 4 and 17]

Borrowing and Debt Legislations

Section 38 — PUBLIC FINANCE AND FISCAL RESPONSIBILITY ACT 2023