SST expanded
SST expanded in Malaysia. 5% to 10% rate will be imposed
Malaysia – 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.
