Prime Minister Dato' Seri Anwar Ibrahim presented Budget 2025 in Parliament today (October 18).

He announced the government's plan to expand the tax system by introducing a 2% tax on dividend income exceeding RM100,000 for individual shareholders, starting in 2025.

This initiative aims to ensure that income tax contributions are not solely from salaried individuals, but also from business owners and large shareholders.

The government is also considering exempting dividend income from government savings schemes such as EPF, unit trusts under PNB, and dividends earned from overseas investments.