PETALING JAYA: Animal feed including raw soybeans have been exempted from the Sales and Service Tax (SST), says the Finance Ministry.
The ministry said this is a measure to ensure price stability for essential food items such as chicken, eggs and meat.
“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 yesterday.
The ministry also said it is conducting a comprehensive review for other raw materials used in the formulation of animal feed.
This includes 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,” the ministry added.
On Friday, The Star had reported that the Association of Commodities Importers for Animal Feed Malaysia (ACiAFM) as calling on the government to reconsider the imposition of the SST on certain imported feed raw materials, warning that the move would push up the cost of producing chicken, eggs and meat.
ACiAFM noted 30% of raw materials used to produce animal feed, including soybeans, wheat pollard, canola meal and vitamin premixes, are subjected to a 5% SST.
