Latest news with #MadaniEconomy
Borneo Post
4 hours ago
- Business
- Borneo Post
MOF: Targeted sales tax rate revision, service tax scope expansion to be effective July 1
Amir Hamzah says 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 photo PUTRAJAYA (June 10): The government will implement a targeted revision of the Sales Tax rates and 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 yesterday. 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. Amir Hamzah Azizan lead MoF review Sales and Service Tax SST
Daily Express
18 hours ago
- Business
- Daily Express
Targeted sales tax rate revision, service tax scope expansion to be effective July 1: MOF
Published on: Monday, June 09, 2025 Published on: Mon, Jun 09, 2025 By: Bernama Text Size: For illustrative purposes only. PUTRAJAYA: The government will implement a targeted revision of the Sales Tax rates and 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. Advertisement '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. Advertisement '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. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Malay Mail
18 hours ago
- Business
- Malay Mail
Sales and service tax revamp from July 2025: Essential goods spared, 5–10pc imposed on non-essentials
PUTRAJAYA, June 9 — 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 December 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. — Bernama
Malay Mail
19 hours ago
- Business
- Malay Mail
Sales, service tax changes coming July 2025, says Finance Ministry
PUTRAJAYA, June 9 — 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 Star
25-05-2025
- Business
- The Star
Harnessing AWES-ome female talent
Empowering move: Tengku Zafrul and Women Leadership Foundation founder and chairman Datuk Dr Hafsah Hashim jointly launching the Asean Women Economic Summit 2025 in Kuala Lumpur. — Bernama KUALA LUMPUR: Asean's first Women's Economic Empowerment Centre (AWES), which will make economic potential and opportunities accessible to all including micro, small and medium enterprises (MSMEs), youth and women, will be set up in Kuala Lumpur. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this aligns with the theme of Malaysia's chairmanship of Asean this year, which is 'Inclusivity and Sustainability'. 'In short, as Asean Chair for 2025, we are placing inclusive growth at the heart of South-East Asia's policies,' he said at the Asean Women Economic Summit, Bernama reported. Tengku Zafrul said while challenges facing the association's individual countries are unique, efforts must be made to ensure region-wide solutions. 'This is where AWES can play a stronger role and as Asean Chair, Malaysia looks forward to the centre,' he said. Tengku Zafrul hoped the centre would generate quick wins to create gender-inclusive standards and policies, as well as improve access to finance for the region. 'If we were to create a US$1bil (RM4.24bil) fund for Asean, how should it be governed to ensure broad-based impact, transparency and access for women-led businesses? 'A lot of work lies ahead. One summit alone won't solve all the challenges facing women. But the centre contributes to a worthy cause that has been championed for decades,' he added. Acknowledging that the odds are often stacked against women, he said Asean could reverse this by creating an environment for women to survive, thrive, enter or re-enter the workforce, start or sustain businesses and avoid having to choose between motherhood and a career. 'This is the roadmap for Malaysia and Asean's future prosperity,' he said. Sharing Malaysia's experience, Tengku Zafrul said Malaysia's Madani Economy framework emphasises sustainability, prosperity and inclusivity, and places women's empowerment at the heart of national development. In his own ministry, various concrete measures have been implemented, including introducing gender-responsive provisions in all new trade agreements and establishing a RM200mil fund specifically for women entrepreneurs in high-growth sectors. 'I should also add that in my ministry, women make up around 69% of the top management. Our chief negotiator on US tariffs, and one of our deputy secretary-generals is a lady. 'We also have many others who are highly experienced,' he added.
