PETALING JAYA: Animal feed and raw soybeans are now exempt from Sales Tax, says the Finance Ministry.
"As a measure to ensure the stability of prices for essential goods, basic food items such as chicken, eggs and meat have been exempted from Sales Tax. Additionally, animal feed, including raw soybeans, which are a key component in the production of animal feed, has also been exempted from Sales Tax. This decision was made based on industry feedback that soybeans are a primary input in the production of animal feed," it said in a statement on Friday (Sept 12).
The ministry said it was conducting a comprehensive review for other raw materials used in the formulation of animal feed.
This includes holding engagement sessions and technical reviews with stakeholders.
"The Madani government remains committed to ensuring a fairer, more sustainable taxation policy that supports the competitiveness of the national livestock sector," it said.
The Star reported on Friday (Sept 12) that the Association of Commodities Importers for Animal Feed Malaysia (ACiAFM) has called on the government to reconsider the imposition of the SST on certain imported feed and raw materials, saying it would push up the cost of producing chicken, eggs and meat.
ACiAFM noted that 30% of raw materials, including soybeans, wheat pollard, canola meal and vitamin premixes to produce animal feed, are subjected to 5% SST.
Its interim president Chong Kam Weng said importers and livestock farmers would inevitably pass on additional costs to consumers.
