Latest news with #JohanMahmoodMerican
Focus Malaysia
16 hours ago
- Business
- Focus Malaysia
Finance ministry justifies SST on imported fruits citing local alternatives
THE Finance Ministry of Malaysia defends its decision to impose a 5% Sales and Service Tax (SST) on imported fruits, stating that locally produced fruits, such as bananas, pineapples, and melons from Terengganu and Kedah, are sufficient alternatives, remaining tax-exempt. In an interview with Malaysiakini, treasury secretary-general Johan Mahmood Merican explained that basic goods like chicken, vegetables, rice, flour, bread, and cooking oil are also zero-rated for SST, as they are widely consumed across income levels. According to him, there was a sufficient diversity of locally grown fruits that are available in supply, that is zero percent taxed. He claimed imported fruits are considered 'discretionary expenditures' with viable local substitutes, justifying the tax. Johan further added that the exemption would encourage the consumption of local produce. The domestic trade and cost of living ministry also actively monitors prices to prevent profiteering, with increased enforcement activities and the provision of affordable alternatives through Jualan Rahmah and Agro Madani. —June 14, 2025 Main image: Wellcure
Malaysiakini
a day ago
- Business
- Malaysiakini
MOF justifies SST on imported fruits, cites sufficient local alternatives
The Finance Ministry has defended its decision to impose a five percent Sales and Service Tax (SST) on imported fruits, arguing that Malaysia already produces sufficient local alternatives that remain exempt from the levy. In an exclusive interview with Malaysiakini, Finance Ministry Treasury secretary-general Johan Mahmood Merican emphasised that whilst basic goods such as chicken, vegetables, rice, flour, bread, and cooking oil continue to enjoy zero-percent taxation, imported fruits are considered...
New Straits Times
2 days ago
- Business
- New Straits Times
Expanded SST to aid B40 and M40 groups - Treasury sec-gen
KUALA LUMPUR: Treasury secretary-general Datuk Johan Mahmood Merican said 5.4 million Malaysians in lower- and middle-income households stand to benefit from the expanded sales and service tax (SST) regime, set to take effect on July 1. He said the anticipated boost in revenue will enable the government to scale up financial assistance for B40 and M40 income groups, such as the monthly Sumbangan Asas Rahmah (Sara). The number of Sara recipients has increased significantly to 5.4 million since April, compared to just 700,000 previously. "As the prime minister highlighted in his 2025 Budget speech, increasing government revenue is essential to enhancing services for the rakyat. "This expansion of the SST is driven by three primary objectives: improvement of services to the people, responsible fiscal management and making fiscal space to face global uncertainty," said Johan. He also said the government has implemented various measures to shield the B40 and M40 groups from the adverse effects of the SST adjustments. Crucially, the Finance Ministry has ensured the SST expansion targets only non-essential goods and services, so that daily expenditure for B40 and M40 families remains largely unaffected. This fiscal move forms part of the Madani economic reform agenda, which aims to reduce the fiscal deficit from 5.5 per cent in 2020 to a targeted 3.8 per cent in 2025. Putrajaya is also directing additional spending towards healthcare, allocating over RM1 billion for permanent contracts and RM400 million to upgrade dilapidated clinics, as well as investing further in schools and rural infrastructure. "The ministry focuses on daily necessities — there is also an element of evaluation," Johan told Free Malaysia Today in a recent interview. Essential items like unprocessed foods (chicken, meat, local vegetables, rice), basic processed foods (flour, sardines, sugar, bread, milk, palm cooking oil), medicines and books will remain exempt from SST (0 per cent). Elaborating on the classification, Johan said the government distinguishes between daily necessities and optional goods. While staple items like sardines, tongkol and kembung remain at 0 per cent SST, premium items such as imported fruits and seafood like salmon, cod and king crab will be subject to a 5 per cent SST. "Optional goods with alternatives are subject to 5 per cent SST, such as electrical appliances and processed foods like jam," he added. Local fruits are not subject to the sales tax, with only imported fruits incurring the 5 per cent rate. Johan expressed hope that the exemptions provided would encourage the consumption of local produce. The Domestic Trade and Cost of Living Ministry also actively monitors prices to curb profiteering, with increased enforcement and provision of affordable alternatives through Jualan Rahmah and Agro Madani. Addressing concerns of potential inflation from profiteering, Johan said the ministry would intensify price monitoring at retail outlets and supermarkets. The government has clarified that the current SST adjustment will not involve any increase to the SST rates — currently set at 0, 5 and 10 per cent — but will broaden the scope of the tax, shifting certain optional goods from 0 to 5 per cent. Unlike the Goods and Services Tax (GST), the SST remains more targeted, minimising the burden on lower-income groups. For instance, service tax on work and education is primarily levied on non-citizens, with the tax imposed on private school fees exceeding a set threshold. Johan described the SST expansion as part of a broader, long-term fiscal reform plan under the Madani economic framework aimed at restructuring the national economy and improving the welfare of Malaysians.
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Broader SST to fund essential support for B40 and M40, says Treasury sec-gen
Treasury secretary-general Johan Mahmood Merican said the SST expansion is part of a long-term fiscal reform plan under the Madani economic framework aimed at restructuring the national economy. (Bernama pic) KUALA LUMPUR : Treasury secretary-general Johan Mahmood Merican says 5.4 million Malaysians in lower- and middle-income households stand to benefit from an expansion to the sales and service tax (SST) regime, set to kick in on July 1. In an exclusive interview with FMT, Johan said the expected boost in revenue will allow the government to scale up its financial assistance to members of the B40 and M40 income groups, such as the monthly Sumbangan Asas Rahmah (Sara). The number of recipients for the Sara programme has expanded significantly to 5.4 million since April, compared to just 700,000 previously. 'As the prime minister highlighted in his 2025 budget speech, increasing government revenue is essential to enhancing services for the rakyat. 'This expansion of the SST is driven by three primary objectives: improvement of services to the people, responsible fiscal management and making fiscal space to face global uncertainty,' Johan said. He also said that the government has taken various measures to safeguard the B40 and M40 groups from the adverse effects of the SST adjustments. Crucially, he said, the finance ministry has ensured that the SST expansion targets only non-essential goods and services, ensuring that daily expenditure for families in the B40 and M40 groups remain largely unaffected. This fiscal management is part of the Madani economic reform agenda, with a focus on reducing the deficit from 5.5% in 2020 to a targeted 3.8% in 2025. Putrajaya is also directing additional spending towards healthcare—allocating over RM1 billion for permanent contracts and RM400 million to upgrade dilapidated clinics, as well as making further investments to improve schools and rural infrastructure. 'The ministry focuses on daily necessities—there is also an element of evaluation,' said Johan. Essential items like unprocessed foods (chicken, meat, local vegetables, rice), basic processed foods (flour, sardines, sugar, bread, milk, palm cooking oil), medicines and books will continue to be exempt from SST (0%). Elaborating on the classification, Johan explained that the government differentiates between daily necessities and optional goods. While basic items like sardines, tongkol, and kembung remain at 0% SST, premium items such as imported fruits and premium seafood like salmon, cod, and king crab will be subject to a 5% SST. 'Optional goods with alternatives are subject to 5% SST, such as electrical appliances and processed foods like jam,' he added. Local fruits are not subjected to sales tax, with only imported fruits incurring a 5% tax. Johan expressed hope that the exemptions given would encourage the consumption of local produce. The domestic trade and cost of living ministry also actively monitors prices to prevent profiteering, with increased enforcement activities and the provision of affordable alternatives through Jualan Rahmah and Agro Madani. Addressing concerns about potential inflation due to profiteering, Johan assured that the ministry will intensify its monitoring of prices at retail outlets and supermarkets. The government has clarified that the current SST adjustment will not see any increase in the SST rate, currently set at 0%, 5%, and 10%. Instead, it seeks to expand the scope of the tax, shifting certain optional goods from 0% to 5%. Unlike the Goods and Services Tax (GST), the SST remains more targeted, minimising the burden on lower-income individuals. For instance, service tax on work and education is primarily levied on non-citizens, with the tax imposed on private schools fees which exceed a set threshold. Johan described the SST expansion as part of a broader, long-term fiscal reform plan under the Madani economic framework aimed at restructuring the national economy and improving the welfare of Malaysians.
Daily Express
2 days ago
- Business
- Daily Express
Broader SST to fund essential support for B40, M40, says Treasury sec-gen
Published on: Friday, June 13, 2025 Published on: Fri, Jun 13, 2025 By: Lauren Lopez, FMT Text Size: Treasury secretary-general Johan Mahmood Merican says the SST expansion is part of a long-term fiscal reform plan under the Madani economic framework aimed at restructuring the national economy. (Bernama pic) Kuala Lumpur: Treasury secretary-general Johan Mahmood Merican says 5.4 million Malaysians in lower- and middle-income households stand to benefit from an expansion to the Sales and Services tax (SST) regime, set to kick in on July 1. In an exclusive interview with FMT, Johan said the expected boost in revenue will allow the government to scale up its financial assistance to members of the B40 and M40 income groups, such as the monthly Sumbangan Asas Rahmah (Sara). Advertisement The number of recipients for the Sara programme has expanded significantly to 5.4 million since April, compared to just 700,000 previously. 'As the prime minister highlighted in his 2025 budget speech, increasing government revenue is essential to enhancing services for the rakyat. 'This expansion of the SST is driven by three primary objectives: improvement of services to the people, responsible fiscal management and making fiscal space to face global uncertainty,' Johan said. He also assured that the government has taken various measures to safeguard the B40 and M40 groups from the adverse effects of the SST adjustments. Crucially, he said, the finance ministry has ensured that the SST expansion targets only non-essential goods and services, ensuring that daily expenditure for families in the B40 and M40 groups remain largely unaffected. This fiscal management is part of the Madani economic reform agenda, with a focus on reducing the deficit from 5.5% in 2020 to a targeted 3.8% in 2025. Putrajaya is also directing additional spending towards healthcare—allocating over RM1 billion for permanent contracts and RM400 million to upgrade dilapidated clinics, as well as making further investments to improve schools and rural infrastructure. 'The ministry focuses on daily necessities—there is also an element of evaluation,' said Johan. Essential items like unprocessed foods (chicken, meat, local vegetables, rice), basic processed foods (flour, sardines, sugar, bread, milk, palm cooking oil), medicines and books will continue to be exempt from SST (0%). Elaborating on the classification, Johan explained that the government differentiates between daily necessities and optional goods. While basic items like sardines, tongkol, and kembung remain at 0% SST, premium items such as imported fruits and premium seafood like salmon, cod, and king crab will be subject to a 5% SST. 'Optional goods with alternatives are subject to 5% SST, such as electrical appliances and processed foods like jam,' he added. Local fruits are not subject to sales tax, with only imported fruits incurring a 5% tax. Johan expressed hope that the exemptions given would encourage the consumption of local produce. The domestic trade and cost of living ministry also actively monitors prices to prevent profiteering, with increased enforcement activities and the provision of affordable alternatives through Jualan Rahmah and Agro Madani. Addressing concerns about potential inflation due to profiteering, Johan assured that the ministry will intensify its monitoring of prices at retail outlets and supermarkets. The government has clarified that the current SST adjustment will not see any increase in the SST rate, currently set at 0%, 5%, and 10%. Instead, it seeks to expand the scope of the tax, shifting certain optional goods from 0% to 5%. Unlike the Goods and Services Tax (GST), the SST remains more targeted, minimising the burden on lower-income individuals. For instance, service tax on work and education is primarily levied on non-citizens, with the tax imposed on private schools fees which exceed a set threshold. Johan described the SST expansion as part of a broader, long-term fiscal reform plan under the Madani economic framework aimed at restructuring the national economy and increasing the welfare of Malaysians. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
