Govt to revise SST rates, broaden scope from July 1
The government will implement a revision of Sales Tax rates and expand the scope of the Service Tax starting July 1, in a move aimed at strengthening Malaysia's fiscal position through higher revenue and a broader tax base.
Finance Minister II Amir Hamzah Azizan announced today that a zero percent sales tax on necessities will be maintained, while non-essential goods will see a tax of between five and 10 percent.
He said the measures are designed to...
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The Sun
9 hours ago
- The Sun
Govt ensures essential goods stay tax-free, safeguarding food security
KUALA LUMPUR: The government will continue to ensure essential goods like rice, cooking oil, vegetables, chicken and fish remain tax-free to safeguard the people's food security. Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu said the implementation of revised Sales Tax (ST), effective July 1, only involves selected and premium goods, at a rate of 5 per cent or 10 per cent. According to him, the items in this category include truffle mushrooms, racing bicycles and king crab. 'This is a balanced approach where most people won't be affected, while those who are better off can contribute fairly to the country's development. 'Insya-Allah, the MADANI Government will continue to ensure policies that are formulated are centred on the principles of social justice and well-being of the people,' he posted on Facebook. Based on the Ministry of Finance's explanation, the zero per cent sales tax is maintained for daily essential goods, like chicken, beef, lamb, fish, shrimp, squid, vegetables, local fruits, rice, barley, oats, wheat, flour, canned sardines, sugar and salt. Also included are white bread, pasta, vermicelli, noodles, instant noodles, milk, cooking oil, medicine, medical devices, books, journals, newspapers and pet food. Zero per cent sales tax is also retained for basic construction materials like cement, bricks and sand as well as agricultural sector inputs such as fertilisers, pesticides, and agricultural and livestock machinery. The ministry added that the MADANI Government had taken measures to ensure the ST is not imposed on daily essential goods to avoid directly affecting the cost of living for the majority of Malaysians and to maintain a controlled inflation rate.
The Sun
9 hours ago
- The Sun
Essential goods to remain tax-free under revised sales tax
KUALA LUMPUR: The government will continue to ensure essential goods like rice, cooking oil, vegetables, chicken and fish remain tax-free to safeguard the people's food security. Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu said the implementation of revised Sales Tax (ST), effective July 1, only involves selected and premium goods, at a rate of 5 per cent or 10 per cent. According to him, the items in this category include truffle mushrooms, racing bicycles and king crab. 'This is a balanced approach where most people won't be affected, while those who are better off can contribute fairly to the country's development. 'Insya-Allah, the MADANI Government will continue to ensure policies that are formulated are centred on the principles of social justice and well-being of the people,' he posted on Facebook. Based on the Ministry of Finance's explanation, the zero per cent sales tax is maintained for daily essential goods, like chicken, beef, lamb, fish, shrimp, squid, vegetables, local fruits, rice, barley, oats, wheat, flour, canned sardines, sugar and salt. Also included are white bread, pasta, vermicelli, noodles, instant noodles, milk, cooking oil, medicine, medical devices, books, journals, newspapers and pet food. Zero per cent sales tax is also retained for basic construction materials like cement, bricks and sand as well as agricultural sector inputs such as fertilisers, pesticides, and agricultural and livestock machinery. The ministry added that the MADANI Government had taken measures to ensure the ST is not imposed on daily essential goods to avoid directly affecting the cost of living for the majority of Malaysians and to maintain a controlled inflation rate.
Free Malaysia Today
9 hours ago
- Free Malaysia Today
Newly taxed service providers to start charging service tax from Sept 1
An expanded SST will be implemented from July 1, which will see a sales tax of 5% to 10% imposed on selected and non-essential goods. PETALING JAYA : Companies offering newly taxable services under the revised Companies offering newly taxable services under thesales and service tax (SST) will only need to start charging service tax from Sept 1, the finance ministry clarified today. The ministry said this applies to businesses not currently registered under SST but now fall under the expanded list of taxable services, such as property rentals. '(Such companies) would need to first establish whether they have reached the revenue threshold of RM500,000 for rental within 12 months. 'If they have reached the revenue threshold in July, then the company will need to register by the month of August and only begin to charge service tax on their services beginning Sept 1, which is more than two months from now,' it said in a statement today. The clarification follows concerns from business groups that the July 1 deadline left insufficient time to implement the service tax, especially for companies unfamiliar with the SST framework. To further support the transition, the finance ministry will offer a grace period until December during which no penalties will be imposed on companies that make genuine efforts to comply with the new requirements. It said the grace period was in view of 'the need to provide time for affected companies to understand how the SST revisions may apply to them'. An expanded SST will be implemented from July 1, which will see a sales tax of 5% to 10% imposed on selected and non-essential goods. The service tax will be expanded to include new services such as construction, rental or leasing, finance, private healthcare, education and beauty.
