Latest news with #salesTax
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
View revised SST in broader fiscal context, tax expert tells M'sians
Basic necessities will continue to be exempted from sales tax, but a 5-10% rate will be imposed on non-essential items. KUALA LUMPUR : The revision of sales tax rates and the expansion of the service tax scope form part of targeted fiscal measures to keep the nation's finances on a sustainable path, say tax experts. PwC Malaysia tax leader Steve Chia said the review of the sales and service tax (SST) was expected, having been announced in the 2025 budget last October, and urged the public to view it in a broader fiscal context. 'While it is aimed at supporting the medium-term fiscal goals, a search for a longer-term solution remains necessary to ensure sustainable revenue contributions for the country. 'Although the current expansion is relatively broader, the government is committed to containing the scope to selected and non-essential goods and business-to-business (B2B) services to ensure the rakyat will not be burdened,' he told Bernama. Finance minister II Amir Hamzah Azizan had announced that the government would implement the revised SST from July 1 to strengthen the country's fiscal position and improve support for public welfare. Chia said a key challenge would be ensuring cascading costs are either eliminated or not passed along the value chain. 'Since the budget was announced, the government has made efforts to engage the relevant stakeholders, including industry associations and tax professionals, to ensure the revisions are well-informed and the impact on industries are taken into consideration. 'Therefore, the change is aimed at strengthening Malaysia's fiscal position by increasing revenue and broadening the tax base. 'We can see that the government is careful in identifying areas for rate increases and scope expansion to protect and cushion the impact on the rakyat at large.' KPMG Malaysia's head of tax Soh Lian Seng however said the current SST framework is often viewed as less comprehensive than the previous goods and services tax (GST) scheme. 'This revision appears to be an effort to make the tax structure more progressive, broadening the base while ensuring the burden does not disproportionately fall on the rakyat. 'Expanding the scope of taxable services and revising rates can help improve revenue collection, which is essential for Malaysia's medium-term fiscal consolidation,' he said. Soh said the government is likely aiming to enhance fairness and efficiency in tax collection by refining the scope and structure of the SST. Soh said there may be a short-term spike in consumer spending as people rush to make purchases before the new rates take effect, similar to what was observed in 2015 ahead of the GST's implementation. 'However, this is likely to normalise within the next few months. In regard to concerns about inflation, the impact should be modest. 'While there are exemptions and reliefs in place to cushion the impact, the net effect should still contribute positively to government coffers, supporting broader fiscal sustainability,' he added.
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Govt to impose 5-10% sales tax on non-essentials, service tax expanded
The finance ministry previously said that the expansion of the sales and service tax is expected to generate RM51.7 billion in revenue in 2025. PETALING JAYA : The 0% sales tax rate for basic necessities will be maintained while a 5% to 10% rate will be imposed on non-essential goods from July 1, the finance ministry announced this evening. Meanwhile, the service tax will be expanded to include rent, lease, construction, financial services, private healthcare and education. 'This expansion however would come with some exemptions to avoid double taxation and ensure that Malaysians are not taxed for certain services,' finance minister II Amir Hamzah Azizan said in a statement. In November, Amir said the expansion of the sales and service tax (SST) was expected to generate RM51.7 billion in revenue in 2025. This would represent an additional revenue of RM5 billion over the current SST collection forecast of RM46.7 billion. Amir, this evening, said the review of the SST was done after engaging the stakeholders, including the associations of relevant industries and tax agents. He added that their input and feedback were taken into account to cushion the impact the policy would have on the industries and to ensure it would not affect the majority of the people. 'The government is committed to pushing for economic reforms. 'To ensure that the people are not impacted by the review of the SST, the government will adopt a targeted approach to make sure essential goods and services are not taxed.'
Bloomberg
a day ago
- Business
- Bloomberg
Malaysia to Expand Services Tax From July 1 to Narrow Deficit
Malaysia is expanding its sales and service tax to include the construction and financial services sectors effective July 1, according to the Finance Ministry. The expansion of the sales and service tax is one of the key measures for Malaysia to meet its fiscal deficit target of 3.8% of gross domestic product, from 4.1% the previous year.
Yahoo
3 days ago
- Business
- Yahoo
Aquatic Center opening delayed in Nevada
NEVADA, Mo. — Citizens in Nevada will have to wait another year for the city's aquatic center to open. In a statement issued Friday, city leaders say that because they are four years behind in completing city audits, financial institutions will not lend them construction start-up money to build the facility. RELATED: Lamar pool 'can no longer be used,' says city staff The city says it hasn't done an annual audit since 2020. The new sales tax, which took effect in January, is bringing in about $36,000 each month. Because it can't be used for start-up costs on the $8 million project, the city must obtain a loan. That means the city is moving the opening date from 2026 to 2027, two years from now. A portion of the sales tax, which was approved by voters last August, can only be used to service the debt for the aquatic park, it cannot be used for the construction of the facility. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Travel Weekly
5 days ago
- Business
- Travel Weekly
Nebraska decides not to charge sales tax that would have hurt advisors
There will be no new sales taxes on travel packages in Nebraska, including travel advisors' professional fees. Senators in the state had initially sought to remove the state's sales tax exemption on "nonessential" goods and services to offset a decrease in property taxes, according to ASTA. That would have resulted in a sales tax of up to 7.5% on travel sold in the state. • Related: ASTA celebrates a legislative win in Louisiana As an example, the Society said, a $3,500 cruise vacation would be subject to a $262 tax. ASTA activated a grassroots campaign with advisors in the state who called and emailed their legislators, expressing the concern that travelers would simply seek an out-of-state advisor to book their travel instead of paying the tax. ASTA attributed its victory in Nebraska to those efforts alongside its lobbying work. Jessica Klement, ASTA's vice president of advocacy, said the tax would have had "serious financial consequences for both Nebraska travelers and travel advisors. "Nebraska legislators narrowly averted driving all travel booking from their state and harming small Nebraska businesses with this unfair and misguided proposal," Klement added. "I applaud the efforts of the travel advisors in Nebraska to successfully fight against this sales tax, protecting both consumers and their small businesses."
