Latest news with #MADANIEconomy
The Sun
5 hours ago
- Business
- The Sun
Sales Tax rate revision, Service Tax scope expansion to be effective
PUTRAJAYA: The government will implement a revision of the Sales Tax rates and an expansion of the Service Tax's scope effective from July 1, 2025, in order to strengthen the country's fiscal position by increasing revenue and broadening the tax base. Finance Minister II Datuk Seri Amir Hamzah Azizan said these measures are aimed at improving the quality of the social safety net without burdening the majority of Malaysians. 'The government is committed to continuing the reforms under the MADANI Economy framework. To ensure that the majority of people are not affected by the Sales and Service Tax (SST) revision, the MADANI government is taking a targeted approach to ensure that basic goods and services are not taxed. 'In addition, various facilities are also being provided to mitigate the impact on micro, small, and medium enterprises (MSMEs),' he said in a statement today. Amir Hamzah said that complementing the MADANI Government's efforts to stimulate the economy and strengthen the social safety net, the additional revenue from the SST enhancements will go towards further public service improvements. These include increasing the amount of cash assistance to the people, as well as strengthening basic infrastructure and the delivery of public services. 'This additional revenue can benefit the entire country without raising the burden on the majority of the people,' he said. Amir Hamzah said the SST review has undergone the process of engagement with stakeholders, particularly industry associations and tax agents. 'Legal preparations also took into account feedback and input from the industry to ensure that the majority of the people are not affected and the impact on the industry is minimised,' the minister said. According to the statement, the Sales Tax rate will remain unchanged for essential goods consumed by the people, while a rate of either five or 10 per cent will be imposed on non-essential or discretionary goods. The scope of the Service Tax will be extended to include new services such as rental or leasing, construction, finance, private healthcare, education, and beauty services. This expansion is accompanied by selective exemptions to avoid double taxation and to ensure that certain essential services for Malaysian citizens are not taxed. Amir Hamzah said the government has also taken into account the need for legal compliance by companies that are subject to the SST. 'In line with that, for companies that take steps to comply with the SST legal requirements, no legal action or penalty will be imposed up to Dec 31, 2025,' he said. Under the Sales Tax revision, the MADANI Government is maintaining a rate of zero per cent on essential daily goods such as rice, chicken, beef, fish, vegetables, sugar, cooking oil, medicine, books, newspapers and pet food, as well as basic construction materials and agricultural inputs such as fertilisers, pesticides and machinery. This approach is aimed at ensuring that there is no direct impact on the cost of living for the majority of people and inflation rates remain manageable. Meanwhile, a five per cent Sales Tax is imposed on selected discretionary items such as king crab, salmon, cod, imported fruits, essential oils, and silk fabrics, while premium items such as racing bicycles and antique hand-painted artworks are subject to a rate of 10 per cent.
The Sun
5 hours ago
- Business
- The Sun
Sales tax rate revision, service tax scope expansion to be effective July 1, 2025
PUTRAJAYA: The government will implement a revision of the Sales Tax rates and an expansion of the Service Tax's scope effective from July 1, 2025, in order to strengthen the country's fiscal position by increasing revenue and broadening the tax base. Finance Minister II Datuk Seri Amir Hamzah Azizan said these measures are aimed at improving the quality of the social safety net without burdening the majority of Malaysians. 'The government is committed to continuing the reforms under the MADANI Economy framework. To ensure that the majority of people are not affected by the Sales and Service Tax (SST) revision, the MADANI government is taking a targeted approach to ensure that basic goods and services are not taxed. 'In addition, various facilities are also being provided to mitigate the impact on micro, small, and medium enterprises (MSMEs),' he said in a statement today. Amir Hamzah said that complementing the MADANI Government's efforts to stimulate the economy and strengthen the social safety net, the additional revenue from the SST enhancements will go towards further public service improvements. These include increasing the amount of cash assistance to the people, as well as strengthening basic infrastructure and the delivery of public services. 'This additional revenue can benefit the entire country without raising the burden on the majority of the people,' he said. Amir Hamzah said the SST review has undergone the process of engagement with stakeholders, particularly industry associations and tax agents. 'Legal preparations also took into account feedback and input from the industry to ensure that the majority of the people are not affected and the impact on the industry is minimised,' the minister said. According to the statement, the Sales Tax rate will remain unchanged for essential goods consumed by the people, while a rate of either five or 10 per cent will be imposed on non-essential or discretionary goods. The scope of the Service Tax will be extended to include new services such as rental or leasing, construction, finance, private healthcare, education, and beauty services. This expansion is accompanied by selective exemptions to avoid double taxation and to ensure that certain essential services for Malaysian citizens are not taxed. Amir Hamzah said the government has also taken into account the need for legal compliance by companies that are subject to the SST. 'In line with that, for companies that take steps to comply with the SST legal requirements, no legal action or penalty will be imposed up to Dec 31, 2025,' he said. Under the Sales Tax revision, the MADANI Government is maintaining a rate of zero per cent on essential daily goods such as rice, chicken, beef, fish, vegetables, sugar, cooking oil, medicine, books, newspapers and pet food, as well as basic construction materials and agricultural inputs such as fertilisers, pesticides and machinery. This approach is aimed at ensuring that there is no direct impact on the cost of living for the majority of people and inflation rates remain manageable. Meanwhile, a five per cent Sales Tax is imposed on selected discretionary items such as king crab, salmon, cod, imported fruits, essential oils, and silk fabrics, while premium items such as racing bicycles and antique hand-painted artworks are subject to a rate of 10 per cent.
The Star
a day ago
- Business
- The Star
Sales tax rate revision, service tax scope expansion to be effective July 1, 2025
A woman walks past an Al-Ikhsan store displaying a 0% GST and SST sign in Petaling Jaya. – NORAFIFI EHSAN/The Star PUTRAJAYA: The government will implement a revision of the Sales Tax rates and an expansion of the Service Tax's scope effective from July 1, 2025, in order to strengthen the country's fiscal position by increasing revenue and broadening the tax base. Finance Minister II Datuk Seri Amir Hamzah Azizan said these measures are aimed at improving the quality of the social safety net without burdening the majority of Malaysians. "The government is committed to continuing the reforms under the MADANI Economy framework. To ensure that the majority of people are not affected by the Sales and Service Tax (SST) revision, the MADANI government is taking a targeted approach to ensure that basic goods and services are not taxed. "In addition, various facilities are also being provided to mitigate the impact on micro, small, and medium enterprises (MSMEs),' he said in a statement today. Amir Hamzah said that complementing the MADANI Government's efforts to stimulate the economy and strengthen the social safety net, the additional revenue from the SST enhancements will go towards further public service improvements. - Bernama
The Sun
24-05-2025
- Politics
- The Sun
Anwar urges PKR leaders, members to strengthen organisation, gear up for GE16
KUALA LUMPUR: Parti Keadilan Rakyat (PKR) president Datuk Seri Anwar Ibrahim has called on all party leaders and members to strengthen the organisation, expand their networks and prepare for the 16th General Election (GE16). The Prime Minister said PKR is not just a political party but a platform for the people's movement that carries the voice of real change. 'I invite all PKR leaders and members to continue to be the voice of those who are suffering, defenders of the weak and upholders of the values of truth, although the path is not easy and the struggle is long,' he posted on Facebook. Anwar said his presidential keynote address at the 2024/2025 PKR National Congress yesterday was not just a summary of government policies, but a call to action and a declaration of resolve to ensure that PKR continues to be a beacon of hope for the people. The Prime Minister added that PKR must also be a strong fortress that rejects politics of hatred, slander and racism, which will only divide the people and weaken the country. 'I emphasise that reform struggles must continue without fear to strengthen integrity, reject corruption in any form and ensure national governance is based on the principles of justice, transparency and accountability. 'Reform is not merely a question of haste or popularity. It requires wisdom, patience and clear strategies. We must learn from historical figures like Umar Abdul Aziz and Václav Havel, who proved that lasting change is change done earnestly and with wisdom,' he said. Anwar also expressed his gratitude to PKR figures like former deputy president Datuk Seri Rafizi Ramli and new deputy president Nurul Izzah Anwar, who never stopped contributing energy and ideas for the sake of the party and people. 'Differences of opinion must be celebrated with wisdom, not turned into excuses for division. We are not enemies of one another but brothers in the same struggle,' he said. In addition, the Prime Minister stressed the importance of the people's continued support towards the achievement and direction of the MADANI Economy that is being activated, including increasing foreign and domestic investments which become a catalyst for sustainable economic growth. He said the government also carried out targeted subsidy reforms that are fairer and more comprehensive, reducing the country's dependence on oil revenues for long-term sustainability, focusing specifically on the well-being of the people, including increasing the salaries of civil servants and protection for the poor. 'The MADANI Government will continue to drive structural reforms that strengthen the education, health and housing sectors of the people. Initiatives such as the Sumbangan Tunai Rahmah Programme, as well as various basic rural facilities are manifestations of our commitment to safeguard the welfare of the people,' he said. The official election results announced yesterday saw Anwar winning the president's post unopposed, while Nurul Izzah defeated Rafizi for the deputy president's post.
The Sun
24-05-2025
- Politics
- The Sun
Anwar urges PKR leaders, members to strengthen organisation
KUALA LUMPUR: Parti Keadilan Rakyat (PKR) president Datuk Seri Anwar Ibrahim has called on all party leaders and members to strengthen the organisation, expand their networks and prepare for the 16th General Election (GE16). The Prime Minister said PKR is not just a political party but a platform for the people's movement that carries the voice of real change. 'I invite all PKR leaders and members to continue to be the voice of those who are suffering, defenders of the weak and upholders of the values of truth, although the path is not easy and the struggle is long,' he posted on Facebook. Anwar said his presidential keynote address at the 2024/2025 PKR National Congress yesterday was not just a summary of government policies, but a call to action and a declaration of resolve to ensure that PKR continues to be a beacon of hope for the people. The Prime Minister added that PKR must also be a strong fortress that rejects politics of hatred, slander and racism, which will only divide the people and weaken the country. 'I emphasise that reform struggles must continue without fear to strengthen integrity, reject corruption in any form and ensure national governance is based on the principles of justice, transparency and accountability. 'Reform is not merely a question of haste or popularity. It requires wisdom, patience and clear strategies. We must learn from historical figures like Umar Abdul Aziz and Václav Havel, who proved that lasting change is change done earnestly and with wisdom,' he said. Anwar also expressed his gratitude to PKR figures like former deputy president Datuk Seri Rafizi Ramli and new deputy president Nurul Izzah Anwar, who never stopped contributing energy and ideas for the sake of the party and people. 'Differences of opinion must be celebrated with wisdom, not turned into excuses for division. We are not enemies of one another but brothers in the same struggle,' he said. In addition, the Prime Minister stressed the importance of the people's continued support towards the achievement and direction of the MADANI Economy that is being activated, including increasing foreign and domestic investments which become a catalyst for sustainable economic growth. He said the government also carried out targeted subsidy reforms that are fairer and more comprehensive, reducing the country's dependence on oil revenues for long-term sustainability, focusing specifically on the well-being of the people, including increasing the salaries of civil servants and protection for the poor. 'The MADANI Government will continue to drive structural reforms that strengthen the education, health and housing sectors of the people. Initiatives such as the Sumbangan Tunai Rahmah Programme, as well as various basic rural facilities are manifestations of our commitment to safeguard the welfare of the people,' he said. The official election results announced yesterday saw Anwar winning the president's post unopposed, while Nurul Izzah defeated Rafizi for the deputy president's post.
