PETALING JAYA: Those going to beauty parlours can smile now –manicures, pedicures, facials and haircuts will remain exempted under the expanded Sales and Service Tax (SST).
The government has issued a revised tax list, following public concern and feedback, to cushion the impact of the tax on the people and small businesses.
In a broader move to manage cost-of-living pressures, the government will also exempt selected imported fruits – apples, oranges, mandarin oranges and dates – from the sales tax.
The Finance Ministry said the decision was made by Prime Minister Datuk Seri Anwar Ibrahim, who also holds the finance portfolio, after taking into account widespread sentiment ahead of the SST expansion from July 1.
The ministry, in a statement, reaffirmed that essential food items such as rice, chicken, beef, vegetables, eggs and various local fish – including selar (yellowtail scad), tongkol (longtail tuna) and cencaru (torpedo scad) – whether fresh, chilled or frozen, remain exempt from the tax.
These types of fish are staple protein sources for many households due to their affordability and accessibility.
The SST will also not be imposed on the purchase of gold, said Treasury secretary-general Datuk Johan Mahmood Merican.
He said the government decided not to tax gold purchases as it is a medium of investment, and for cultural and economic reasons, too.
“Gold bars and jewellery are often considered investment tools or savings.
“From a cultural perspective, gold plays an important role in various communities, often given as symbolic gifts or blessings during significant life events such as the birth of a child or weddings.
“Even if you walk into a jewellery shop to buy a gold necklace or similar items, no tax will be imposed,” he said in a Finance Ministry TikTok live session titled “SST Naik, Semua Harga Pun Naik?” (SST Gone Up, All Prices Going Up Too?).
Johan noted that some businesses also use gold as collateral to obtain operational funds or loans.
On the fruits getting exemption, he said although apples and oranges are not cultivated in Malaysia, they are integral to daily life.
He also pointed out that during Chinese New Year or Hari Raya, the demand for these fruits – including mandarin oranges and dates – are particularly high, justifying the tax exemption.
Johan noted that fruits like locally-grown banana will not be taxed, while imported fruits like strawberries, blueberries and avocados are considered “selective items”, and will continue to be taxed.
“The cost of our ‘pisang goreng’ will not increase. But if imported bananas are used, they will be taxed,” he said.
Hairdressers and beauty salon operators had voiced concern that taxing their services would unfairly burden small businesses and lower-income consumers.
To reduce the burden on small businesses, the annual sales threshold for mandatory service tax registration has been raised from RM500,000 to RM1mil for leasing, rental and financial services. This means only companies generating over RM1mil in yearly sales from such services will be required to charge the 8% tax.
For financial services, the tax applies specifically to fee- or commission-based activities.
The ministry also reminded the public and stakeholders to refer only to verified information on the SST rollout, including official announcements, guidelines, FAQs and subsidiary legislation available through the Finance Ministry and Customs Department websites.
Further enquiries can be directed to the Customs Department SST Call Centre at 1-300-888-500 or through the dedicated hotline numbers.
