Post by : Meena Ariff

Photo: AFP

The government has made changes to its Sales and Service Tax (SST) plan after listening to the worries of people and businesses. These changes will start on July 1.

These changes will help reduce the financial burden on consumers and small businesses while keeping a fair tax system.

Now, imported mandarin oranges and dates will not have SST. Earlier, the Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said that apples and oranges would not be taxed under SST.

The government also confirmed that important daily goods like rice, chicken, beef, vegetables, eggs, and local fish such as selar, tongkol, cencaru, and sardines will remain free from sales tax.

To help small businesses, the government has increased the registration limit for Service Tax from RM500,000 to RM1 million for businesses involved in leasing, rental, and services based on fees or commissions. This means only businesses making more than RM1 million a year in these areas will need to pay Service Tax. This change will help many Micro, Small, and Medium Enterprises (MSMEs) in Malaysia.

The government also said it will not go ahead with its earlier plan to charge Service Tax on beauty services. This includes services like manicures, pedicures, facials, barber services, and haircuts.

People are advised not to believe or share wrong news about SST changes.

Earlier, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said that the government was ready to review the new SST plan, especially for imported fruits like apples and mandarin oranges.

On June 9, the government announced that the new SST plan would start on July 1, 2025. The sales tax rate for essential goods will stay the same, while a five or ten percent tax will be added to non-essential items.

Also, the Service Tax will cover six new areas which are rental or leasing, construction, finance, private healthcare, education, and beauty services.