Latest news with #SalesAndServiceTax
Malay Mail
11 hours ago
- Business
- Malay Mail
SST expansion and carbon tax coming as govt aims for a fairer, greener future, says Amir Hamzah
KUALA LUMPUR, Aug 19 — The government made the decision to maintain the Sales and Service Tax (SST) with an expanded scope after considering both SST and the Goods and Services Tax (GST), according to Finance Minister II Datuk Seri Amir Hamzah Azizan. He said the government acknowledges that both consumption tax systems have their advantages and disadvantages, but the expanded SST has been designed to be targeted and progressive to ensure that the tax burden is distributed more fairly and borne by those with the capacity to pay. 'Among the key basic considerations were system readiness and swift impact, targeted approach and manageable effects compared to the broad-based nature of GST, and SST allowing the Madani Government to take a more progressive approach by setting a more focused taxation scope,' he said while wrapping up the debate on the 13th Malaysia Plan for the Finance Ministry (MoF) in the Dewan Rakyat yesterday. Amir Hamzah also noted that although GST provided a list of exemptions and zero-rated items, the number of items is smaller compared to that of goods and services exempted from SST. He also explained that the government expects to generate an additional collection revenue of RM5 billion in 2025, and RM10 billion for the full year 2026. 'The increase in revenue from the SST expansion will be used for continued investment in improving the social safety net system for the people's well-being. 'As an example, the allocation for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programmes has been increased from RM10 billion in 2024 to RM15 billion in 2025 to assist citizens in coping with the cost of living challenges,' he added. Touching on the carbon tax, Amir Hamzah said the government plans to introduce a carbon tax in 2026 as part of its commitment to achieving net-zero carbon emissions by 2050. 'In the initial phase, it will focus on the iron, steel, and energy sectors, which are the main contributors to greenhouse gas emissions,' he explained. Amir Hamzah said the MoF is currently studying international best practices, including those from Norway, the United Kingdom, Canada, South Korea, Japan, as well as countries in this region such as Singapore and Indonesia which have implemented or are in the process of implementing carbon tax and emissions trading schemes. 'The carbon tax implementation framework will be aligned with the country's climate change policy and carbon market while also taking into account measures that have started to be implemented such as the retargeting of fossil fuel subsidies,' he said. — Bernama
Malay Mail
19-06-2025
- Business
- Malay Mail
Govt to clarify expanded SST, won't burden M40 or lower-income groups, says PM Anwar
ISKANDAR PUTERI, June 19 — Prime Minister Datuk Seri Anwar Ibrahim said the government will provide a more detailed explanation regarding the expanded Sales and Service Tax (SST), which will take effect on July 1. He acknowledged that there was confusion regarding the expanded tax and the government aims to ensure that its implementation will be done in a targeted manner. 'I agree that the government needs to give an explanation and to clarify the matter. 'What is important is that we do not want to burden the lower-income groups or the M40,' he told reporters after attending a close-door Johor PKR leadership event held at the Mall of Medini here today. The prime minister attended in his capacity as the PKR president. Anwar, who is also the finance minister, explained that previous general statements on the expanded SST had also caused some confusion. He gave an example of a statement saying that bananas were soon subjected to the SST, but clarified that this only applied to imported bananas. 'This issue has created some confusion where the public argued that even the poor consume fruits. 'This is an area where the government can address to the public in addition to making one or two changes,' he said. Anwar said taxation was an important feature for the government as it will see to better schools and public hospitals. 'We have to think of where the government can get funds to maintain public hospitals with better facilities and improved school buildings,' he said, adding that such taxes are mainly for those that are in the higher income bracket and foreigners.
The Star
28-04-2025
- Business
- The Star
SST expansion postponed, says ministry
PETALING JAYA: The expansion of the Sales and Service Tax, originally planned for May 2025 as announced in Budget 2025, will be implemented at a later date, says a Finance Ministry spokesperson. The spokesperson said the ministry has completed its nationwide engagements with various industries to finalise the scope of the expansion and the applicable tax rates. "The guidelines and scope are now being refined to ensure a smooth implementation," the spokesperson told The Star. When tabling Budget 2025 last year, Prime Minister Datuk Seri Anwar Ibrahim announced that basic food items would remain exempt from the Sales and Service Tax. However, premium products such as salmon and avocados were set to be included in the expanded tax regime. Budget 2025 also revealed the expansion of service tax from the current 6% to 8%, covering new taxable services, including business-to-business commercial transactions. The sales tax, currently imposed at 5% or 10% depending on the goods, was to be broadened, with essential items continuing to enjoy a 0% rate. The government had projected to raise an additional RM1.3bil from sales tax on imported goods, RM0.9bil from sales tax on local goods and RM2.8bil from expanded service tax collections, based on the 2025 revenue estimates. COMPLI Keywords: Sales And Service Tax, SST, Finance Ministry, Budget 2025, Tax Expansion, Malaysia, Service Tax, Sales Tax, Tax Policy, Revenue Estimates
