Refined sugar remains tax-free under SST revision
KUALA LUMPUR: Refined sugar (or commonly known as white sugar) remains tax-free under the revised Sales and Service Tax (SST) that will take effect on July 1, 2025, said the Ministry of Finance (MOF).
The MOF said in a statement today that raw sugar used in the production of refined sugar would be subject to a five per cent sales tax.
'However, as previously announced, manufacturers such as MSM Malaysia Holdings Bhd are eligible to apply for tax exemption on their raw materials and inputs.
'Hence, there is no reason for any increase in the price of refined sugar — especially since sugar refiners like MSM continue to receive monthly incentives from the government to ensure supply and price stability,' the MOF said.
The MOF said this to clarify a statement issued by MSM regarding the impact of the sales tax revision on raw sugar.
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