PETALING JAYA: The expansion of the Sales and Service Tax (SST), initially slated for May this year as announced in Budget 2025, will be implemented at a later date, says a Finance Ministry spokesman.
“The ministry has completed its nationwide engagements with multiple industries to finalise the scope of the expansion and the applicable tax rates.
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“The guidelines and scope are now being refined to ensure a smooth implementation,” the spokesman 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 SST. However, the expanded tax regime would include premium products like salmon and avocados.
ALSO READ: Budget 2025: SST to be expanded from May 2025
Budget 2025 also disclosed the expansion of the service tax from 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.
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Finance Minister II Datuk Seri Amir Hamzah Azizan had said the expansion of the SST scope announced in Budget 2025 is expected to generate an extra RM5bil in revenue.
