Latest news with #serviceTax
Free Malaysia Today
8 hours 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
10 hours 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.
