Latest news with #SalesandServiceTax
The Star
4 hours ago
- Business
- The Star
Paramount expects property market to remain soft in 2H25
Paramount Corp Bhd group chief executive officer Jeffrey Chew. PETALING JAYA: Property developer Paramount Corporation Bhd expects the property market to remain soft in the second half (2H) of 2025 without any catalyst to boost it amid concerns over US tariffs as well as rising costs due to the fuel subsidy rationalisation and Sales and Service Tax (SST) expansion. Group chief executive officer and director Jeffrey Chew Sun Teong said that to date, the company has managed to achieved RM600 million sales out of the targeted RM1.6 billion sales for this year as buyers are holding back due to the rising cost of living. "Everybody is concerned over the US tariffs. Then, with the impending cost escalation because of the fuel subsidy rationalisation and SST (expansion), people are holding back a bit. So sales are a little softer. "There is a possibility that we may have to revise our sales target (for this year),' he told a press conference after the company's investor relation and media presentation here today. Chew said the food and beverage (F&B) segment is expected to be the second largest contributor to the Paramount group's earnings after the property segment. Paramount Corporation yesterday announced its unit Venice Concepts Sdn Bhd's proposed acquisition of a 28 per cent stake in Envictus International Holdings Ltd from JAG Capital Holdings Sdn Bhd for S$38.33 million (RM126.32 million). Singapore-based Envictus is the franchise holder of Texas Chicken and San Francisco Coffee in Malaysia as well as a wholesaler of foodstuff and frozen food. It is also involved in the dairies segment through the manufacturing and distribution of sweetened and evaporated creamer. According to Paramount Corporation's filing with Bursa Malaysia, Envictus recorded an unaudited net profit of RM16.11 million on revenue of RM369.78 million for the six-month period ended March 31, 2025. Paramount owns two restaurants in Kuala Lumpur, namely Dewakan -- Malaysia's only 2-Michelin Star restaurant for two consecutive years since 2024 and a Michelin Green Star recipient in 2025 -- and Bidou, a newly established restaurant offering classical French cuisines. Commenting on the San Francisco Coffee business, Chew said the company sees an opportunity to turn the coffee outlets into fast food and quick snack cafes as the coffee market is becoming oversaturated with more newcomers coming in. "The food (at San Francisco Coffee) is quite good. There are a lot of variety of wraps and some pastries, but a lot of people are not aware of it. "So we think that they have to work on some plans to actually improve themselves and reposition. Hopefully, it can be a bit more profitable in the future,' he said. - Bernama
The Star
6 hours ago
- Business
- The Star
Alliance Bank cautiously optimistic on FY26 performance, says group CEO
Alliance Bank Malaysia Bhd group chief executive officer Kellee Kam KUALA LUMPUR: Alliance Bank Malaysia Bhd is cautiously optimistic of its financial performance ending March 31, 2026 (FY2026) amid economic headwinds, said group chief executive officer Kellee Kam. He said the bank projects a double-digit growth rate for its loans, between 8.0 per cent and 10.0 per cent for its consumer segment in FY2026, which is lower than its previous loan growth of between 12.0 per cent and 14 per cent over the last two years. "The question is whether a combination of rising business costs as well as potential tariffs will impact business growth as well as asset quality. It is too early to tell. The expanded Sales and Service Tax was recently implemented. "The United States tariffs have not been finalised yet, so that remains a bit of a moving target,' Kam said after the bank's annual general meeting and extraordinary general meeting here today. Despite the headwinds, he noted that the liquidity position remained positive with the recent overnight policy rate (OPR) cut by 25 basis points to 2.75 per cent, a lower unemployment rate, and positive industrial and tourism figures to cushion the impact of economic headwinds. "We believe that these are compensating factors, and asset quality will be manageable this year,' Kam said. He also said that the bank projects its net interest margin to reduce by 3.0 basis points with the recent OPR cut. "It is still within our current guidance of between 2.4 per cent and 2.45 per cent. That would signal an increase in business and lending, but it has to balance prudently with the macroeconomics landscape,' Kam said. - Bernama
Borneo Post
13 hours ago
- Business
- Borneo Post
Malaysia drops High Value Goods Tax, leans on expanded SST instead
Amir Hamzah says the principle of HVGT has been embedded into the revised sales tax system, where luxury and discretionary items are now taxed at higher rates of 5 or 10 per cent. – Bernama photo KUALA LUMPUR (July 30): The government has decided not to proceed with implementing the High Value Goods Tax (HVGT), Finance Minister II Datuk Seri Amir Hamzah Azizan said in a written parliamentary reply yesterday. In a written parliamentary reply to Jempol MP Datuk Shamshulkahar Mohd Deli, he said the principle of HVGT has been embedded into the revised sales tax system, where luxury and discretionary items are now taxed at higher rates of 5 or 10 per cent The government expects to collect RM5 billion in additional revenue this year from the July 1 expansion of the Sales and Service Tax (SST), with the amount projected to double to RM10 billion in 2026, he explained. Amir Hamzah added that the targeted diesel subsidy programme is saving the government up to RM600 million a month. The Low Value Goods (LVG) tax, which came into effect on January 1 2024, generated around RM500 million in revenue this year. Meanwhile, the Service Tax on Digital Services (SToDS) brought in RM1.6 billion in 2024, after being imposed since January 2020. The Capital Gains Tax (CGT), effective from March 1, 2024, is estimated to yield RM800 million annually, although the final amount will only be known after corporate taxpayers file their returns. Amir Hamzah clarified that the government has no plans to introduce a separate digital goods tax, as digital services are already taxed under the existing service tax framework. Amir Hamzah Azizan high-value goods tax
Malay Mail
14 hours ago
- Business
- Malay Mail
Malaysia drops High Value Goods Tax, leans on expanded SST instead
KUALA LUMPUR, July 30 — The government has decided not to proceed with implementing the High Value Goods Tax (HVGT), Finance Minister II Datuk Seri Amir Hamzah Azizan said in a written parliamentary reply yesterday. In a written parliamentary reply to Jempol MP Datuk Shamshulkahar Mohd Deli, he said the principle of HVGT has been embedded into the revised sales tax system, where luxury and discretionary items are now taxed at higher rates of 5 or 10 per cent The government expects to collect RM5 billion in additional revenue this year from the July 1 expansion of the Sales and Service Tax (SST), with the amount projected to double to RM10 billion in 2026, he explained. Amir Hamzah added that the targeted diesel subsidy programme is saving the government up to RM600 million a month. The Low Value Goods (LVG) tax, which came into effect on January 1 2024, generated around RM500 million in revenue this year. Meanwhile, the Service Tax on Digital Services (SToDS) brought in RM1.6 billion in 2024, after being imposed since January 2020. The Capital Gains Tax (CGT), effective from March 1, 2024, is estimated to yield RM800 million annually, although the final amount will only be known after corporate taxpayers file their returns. Amir Hamzah clarified that the government has no plans to introduce a separate digital goods tax, as digital services are already taxed under the existing service tax framework.
New Straits Times
2 days ago
- Business
- New Straits Times
Sarawak Timber Association calls on federal govt to re-introduce GST
KUCHING: Sarawak Timber Association (STA) has called on the federal government to re-introduce the Goods and Services Tax (GST), saying businesses in Sarawak generally welcomed it compared with the Sales and Service Tax (SST). STA chief executive officer Annie Ting said most businesses already had GST-ready accounting systems and their personnel were also familiar with compliance procedures in the previous implementation from April 2015 to August 2018. "Hence a reintroduction of GST may not require a long preparation of 18 months like when it was introduced in 2015," she said in a statement today. Ting reckoned that a short six-month period would suffice for its smooth re-implementation. She added that as previously experienced, GST could bring in higher and stable revenue for the government, which were crucial for economic stability and development funding. She said that it was generally felt that GST could be introduced at a low rate, say three per cent, instead of six, to mitigate price increase which may be one-off and inflation. Ting said targeted subsidies to B40 households, such as direct cash aid, could be dispatched to offset their burden on price hikes, adding that basic groceries and essential services such as education and healthcare service might be exempted from the tax. Ting said the expanded SST, which coincided with Phase 3 of the e-invoice rollout, had left businesses scrambling to adapt to new compliance requirements on a tight deadline. "While consumers may receive temporary relief, businesses face a permanent increase in complexity and cost," she said, adding that the cascading tax effect inherent in the SST system remained, where taxes had accumulated through the supply chain, ultimately raising the cost of doing business. "For industries like timber, the reclassification of previously exempt goods such as sawn timber and plywood into the five or 10 per cent sales tax bracket presents a significant challenge. "This situation is further complicated by the intricate sales tax exemption mechanisms for raw materials, which create compliance burdens for manufacturers producing both taxable and non-taxable goods. "These industry-specific issues highlight a disconnect between broad fiscal policies and the granular realities of business operations," she said. She said Malaysia's fiscal health required a stable revenue stream and GST was the best option for long-term economic resilience despite issues such as slow refunds. "Any effort to strengthen the country's fiscal position, including through the SST, must be built on transparency and accountability. "Without addressing crucial points such as leakages and weak governance, even the most well-designed tax measures will struggle to achieve their goals," she said. She said the federal government, rather than simply introducing new taxes or expanding the scope of the SST, its focus should be on restoring public trust and ensuring the responsible use of public funds. "A fair and effective tax system can only succeed when revenue is managed holistically and with integrity," Ting said.
