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Malay Mail
11 hours ago
- 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
