SAMENTA praises SST revision as relief for Malaysian SMEs
KUALA LUMPUR: The Small and Medium Enterprises Association Malaysia (SAMENTA) has lauded the Ministry of Finance's updated Sales and Service Tax (SST) expansion, calling it a significant relief for small and medium enterprises (SMEs).
SAMENTA president Datuk William Ng highlighted that the revised policy raises the annual sales threshold for service tax on rental and financial services, sparing around 75% of SMEs from an additional eight per cent tax burden.
'When the expansion of the SST was first announced, SAMENTA was among the first to voice concerns, particularly over its potential impact on our SMEs.
We urged the government to raise the SST threshold - a move that would protect smaller enterprises while still allowing for a broader and fairer tax base,' Ng said in a statement.
The MoF confirmed today that, after reviewing public feedback, it will not extend the service tax to beauty services such as manicures, pedicures, facials, and barber or hairdressing services.
All adjustments followed consultations with industry stakeholders.
Ng thanked Prime Minister Datuk Seri Anwar Ibrahim for addressing SME concerns and revising the tax thresholds.
'While we will continue to advocate for a balanced and SME-friendly approach in future tax reforms, we consider this matter concluded and will not seek further concessions on the SST expansion,' he added.
He advised affected SMEs to prepare for the updated SST regulations and seek guidance from the Royal Malaysian Customs Department if needed.
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