Govt to impose 10% sales tax on non-essentials, service tax expanded

PETALING JAYA: The 0% sales tax rate for basic necessities will be maintained while a 5% to 10% rate will be imposed on non-essential goods, the finance ministry announced this evening.

Meanwhile, the service tax will be expanded to include rent, lease, construction, financial services, private healthcare and education.

“This expansion however would come with some exemptions to avoid double taxation and ensure that Malaysians are not taxed for certain services,” finance minister II Amir Hamzah Azizan said in a statement.

In November, Amir said the expansion of the sales and services tax was expected to generate RM51.7 billion in revenue in 2025.

This would represent an additional revenue of RM5 billion over the current SST collection forecast of RM46.7 billion.

sos

Terbaik Madanon

bile mau uturn?

PH

PastinNaik

Madanon govt always penalized ppl with money

Education oso wanna tax!

Niamacauhei

What is the taxed product list?

About time madanon take more money then remove again to say government prihatin

Topkek madanon

remove when it is close to GE16, as usual, make a lot of projects to collect fund for GE16. BN style.

In merehsia learn to live like a Biforti and you would do well...

gomen tare duit dah...

cash cows sulah drying up dah...

ini service tax has no difference with GST, baik implement GST jer lah

Additonal tax collected and later u will see jakim budget from 2bil increased to 5bil.

they cant even come up with a standard list of taxation exempted and non-exempted.

As robin hood gov, B40 (PAS supporter) is going to be main benefiaries. Meanwhile M40 & T20 (PH supporter) will be penalised. Thank you for your vote

This post has been edited by Singh_Kalan: Jun 9 2025, 07:04 PM

just introduce the GST laaa.. why susah as and when the day come

Kek.

I know one restoran when you pay that time, they will ask you whether you want resit or not.

If want resit means pay extra for tax, if no resit means tax free meal hngggggg

Madani is encouraging this

This post has been edited by Sam Loo: Jun 9 2025, 07:05 PM

Stop subsidising the b40s
They will vote pas

AI Summary:

This document outlines Malaysia's tax policies, specifically covering two main areas:

1. Sales Tax (Cukai Jualan - CJ)

Basic Necessities (0% rate): Essential items like rice, chicken, beef, fish, vegetables, fruits, bread, milk, and basic food staples are exempt from sales tax to ensure affordability for the public.

Selected Items (5% rate): Certain goods including king crab, salmon, imported luxury foods, essential oils, and premium fabrics have been increased from 0% to 5% tax rate.

Premium Items (10% rate): Luxury goods such as premium skincare and antique items are taxed at 10%.

2. Service Tax (Cukai Perkhidmatan - CP)

The document details various service tax rates and exemptions:

Rental/Lease Services (8%): Applied to property rentals, with specific exemptions for:
- Diplomatic missions and international organizations
- Small and medium enterprises (SMEs) with annual turnover under RM500,000
- Business-to-business transactions for tax avoidance prevention
- 12-month exemption periods for certain contracts

Construction Services (6%): Applied to construction services above RM1.5 million threshold, with exemptions for small contractors and certain business arrangements.

Financial Services (8%): Applied to financial services based on fees or commissions, with exemptions for basic banking services and Shariah-compliant transactions.

Healthcare Services (6%): Applied to private healthcare services above RM1.5 million threshold, with special provisions for Malaysian citizens and traditional medicine practices.

Education Services (6%): Applied to private education with annual fees exceeding RM60,000, with exemptions for underprivileged Malaysians and considerations for higher education accessibility.

Beauty Services (8%): Applied to beauty and wellness services exceeding RM500,000 over 12 months, including treatments like facials and hair styling.

The policy aims to balance revenue generation with protecting essential services and supporting small businesses while ensuring broader industry compliance.​​​​​​​​​​​​​​​​