SST exemptions for key construction projects, including homes, parks, and public toilets, says Ahmad Maslan
He said essential building materials such as cement, aggregate (gravel) and sand remain zero-rated under the sales tax to help reduce the burden on developers and ensure the continuity of infrastructure projects.
'Selected business-to-business (B2B) activities are subject to certain conditions. For instance, main contractors are subject to SST, but not to subcontractors earning below the threshold of RM1.5 million,' he said during an oral question and answer session at the Dewan Rakyat today.
Ahmad was responding to a question from Yusuf Abd Wahab (GPS-Tanjong Manis) regarding the categories of construction projects exempted from SST, as well as the ministry's steps to ensure that existing projects are not affected by its implementation.
In line with the government's commitment to implement SST fairly and effectively, he said, companies and contractors that carry out contracts that do not allow for review will be granted a one-year exemption, subject to terms and conditions.
'This incentive is part of the government's measures to ensure the construction industry has sufficient time to adjust the system, streamline the registration process and obtain accurate clarification on the implementation of SST,' he said.
Meanwhile, Ahmad said that there has been no discussion to increase the threshold value for registration of taxable services for the construction sector from RM1.5 million to RM3 million.
He was responding to a supplementary question from Abdul Latiff Abdul Rahman (PN-Kuala Krai) regarding the industry's proposal for the threshold value for registration of SST taxable services to be increased from RM1.5 million to RM3 million, particularly for construction and rental and leasing categories. — Bernama
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