Anwar: More goods exempted under SST compared with GST
He said following the review of rates and the expansion of the SST scope, 1,826 items were exempted under SST, compared with just 607 items previously exempted under GST.
"The exemptions cover a wide range of basic necessities and commonly used items, including unprocessed or raw food such as chicken, beef, mutton, fish, vegetables, local fruits and rice. Processed foods such as flour, sugar, salt, white bread, milk and palm cooking oil are also exempted.
"This also applies to medicines, medical devices and reading materials. In addition, SST exempts livestock and pet food, basic construction materials, fertilisers, pesticides, as well as agricultural and livestock machinery," he said in a parliamentary written reply.
He was responding to Yuneswaran Ramaraj (PH–Segamat), who asked about the number of goods exempted under SST in 2025 compared with GST, as well as the categories of exempted goods.
Anwar said service tax was imposed on 70 per cent of services in the economy, compared to 76 per cent under GST, based on the Malaysia Standard Industrial Classification (MSIC) Codes.
He added that a range of essential services remain exempt.
These include passenger transport by land and sea such as school buses, express buses, LRT, trains and ferries as well as air passenger transport under Rural Air Services in Sabah and Sarawak. Prepaid telecommunications services are also exempt.
Other services not subject to tax include food and beverage delivery, residential rental, residential cleaning and maintenance, water supply, electricity supply of up to 600 kWh for residential use, and electricity supply to business premises.
"The government remains committed and cautious in implementing the expansion of SST. Its implementation is targeted and progressive, taking into account the impact on the cost of living.
"More practical and comprehensive measures have also been introduced to reduce the effects of double taxation and mitigate living costs, while supporting sustainable economic growth.
"The greater number of exempted goods and the lower percentage of taxable services under SST, compared with GST, reflect the government's concern for the people's welfare, while ensuring stronger fiscal sustainability in line with the principles of the Madani Economic Framework," he said.
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