Amir Hamzah: SST enhancements expected to help generate RM51.7bil revenue in 2025


KUALA LUMPUR: The enhancements to the Sales and Service Tax (SST), effective from May 1, 2025, are expected to help generate revenue of RM51.7 billion in 2025, according to Finance Minister II Datuk Seri Dr Amir Hamzah Azizan.

He said this represents an additional revenue of RM5 billion over the current SST collection forecast of RM46.7 billion.

"Of the RM5 billion forecast, RM2.2 billion would be from sales tax collection while RM2.8 billion would come from service tax collection.

"This increase in revenue would be sufficient to accommodate the government’s current needs and, at the same time, would not burden the low-income group,” he said when winding up the Supply Bill 2025 (Budget 2025) debate at the policy level for his ministry in the Dewan Rakyat today.

Amir Hamzah said the scope of the service tax will be extended to include the provision of commercial services between businesses, or business-to-business, which is currently not taxed.

The SST expansion is done in a progressive manner, as the structure and method takes into account the people’s economic affordability as well as the impact on the low-income group, he said.

"The SST expansion focuses on the imposition of tax on specific goods and services so that essential food items and services are not subject to the SST imposition.

"Therefore, it does not have an effect on the low-income group which depends on these essential goods and services,” he said.

Amir Hamzah said in line with strengthening fiscal position, part of the additional tax revenue will be used to enhance cash assistance provided to the people as well as increasing the quality of educational and health services,” he added. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

Sabah awards LSS projects with 199MW capacity to 15 bidders
Fire outbreak at Homeritz unit's factory in Muar
AmanahRaya REIT completes acquisition of private education property for RM31.4mil
Bermaz Auto posts weaker 2Q as competition grows in local market
Bursa Malaysia bucks regional trend to end slightly lower, CI stays above 1,600
GDB bags RM298mil logistics warehouse contract in Klang
Gamuda records higher 1Q net profit of RM205.39mi, orderbook hits record-high of RM30bil
YTL AI Labs releases Malaysian LLM
Paramount unit inks RM145mil acquisition of KL land for new high-end residential project
Sapura Energy's 3Q bottomline hit by forex losses

Others Also Read