Malaysia: Excise tax on pre-mixed beverages (including certain coffees and teas) postponed

The implementation of excise tax on pre-mixed beverages postponed

The implementation of excise tax on pre-mixed beverages postponed

The 2022 budget included a proposal to expand the scope of the excise tax (duty) on sugar-sweetened beverages to include pre-mixed preparations of certain beverages including those that are chocolate or cocoa-based, malt, and certain coffee and tea drinks.

The excise tax was proposed to be effective 1 April 2022. Read TaxNewsFlash

The Royal Malaysian Customs Department on 31 March 2022 announced that implementation of the excise tax on pre-mixed beverages was being postponed to a later date (to be announced).  

KPMG observation

The postponed effective date provides businesses more time to understand details of the proposed excise tax expansion and to determine that their implementation of the rules is executed smoothly. 

Read an April 2022 report prepared by the KPMG member firm in Malaysia

 

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