PETALING JAYA: The expansion of the Sales and Service Tax, originally planned for May 2025 as announced in Budget 2025, will be implemented at a later date, says a Finance Ministry spokesperson.
The spokesperson said the ministry has completed its nationwide engagements with various industries to finalise the scope of the expansion and the applicable tax rates.
"The guidelines and scope are now being refined to ensure a smooth implementation," the spokesperson told The Star.
When tabling Budget 2025 last year, Prime Minister Datuk Seri Anwar Ibrahim announced that basic food items would remain exempt from the Sales and Service Tax.
However, premium products such as salmon and avocados were set to be included in the expanded tax regime.
Budget 2025 also revealed the expansion of service tax from the current 6% to 8%, covering new taxable services, including business-to-business commercial transactions.
The sales tax, currently imposed at 5% or 10% depending on the goods, was to be broadened, with essential items continuing to enjoy a 0% rate.
The government had projected to raise an additional RM1.3bil from sales tax on imported goods, RM0.9bil from sales tax on local goods and RM2.8bil from expanded service tax collections, based on the 2025 revenue estimates.
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Keywords: Sales And Service Tax, SST, Finance Ministry, Budget 2025, Tax Expansion, Malaysia, Service Tax, Sales Tax, Tax Policy, Revenue Estimates
