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