KUALA LUMPUR: The Malaysia Retailers Association (MRA) has urged the Finance Ministry to revoke the planned eight per cent Sales and Service Tax (SST) on commercial rental and leasing services.

Its president Datuk Andrew Lim Tatt Keong said the additional levy could strain business sustainability and fuel consumer price increases.

He said retailers are already grappling with a raft of cost pressures, including the minimum wage hike to RM1,700, rising electricity tariffs, stamp duties on employment contracts, fuel subsidy rationalisation, and the earlier SST rate increase from six to eight per cent.

"These are just a few examples of rising fixed operational costs. Even these alone are already impacting business sustainability and bottom lines," he said in a statement today.

Lim added that the retail sector was not consulted prior to the decision to impose SST on commercial rentals, despite rental being among the largest fixed costs for many businesses.

"It is unrealistic to expect retail businesses to absorb the full impact, and many may have no choice but to pass these costs on to consumers, contributing to inflation and intensifying the rakyat's cost-of-living burden," he said.

He also pointed to growing global uncertainties, particularly the recent conflict escalation between Iran and Israel, as further reason to reconsider the timing of the tax.

In response, the MRA proposed several measures. These include a complete waiver of the SST on commercial rentals or, at the very least, a deferral until both global and domestic conditions are more stable.

The association also called for the tax to be fairly shared between landlords and tenants, rather than borne entirely by retailers.

It urged that service charges and shared area fees be excluded from the tax scope and that the SST exemption threshold be raised to RM2 million in annual sales to protect small and independent retailers.

Additionally, the MRA suggested delaying implementation until after Visit Malaysia Year 2026 and introducing the tax gradually, starting at three per cent and increasing progressively to eight per cent over five years.

Lim said the retail sector plays a vital role in driving domestic economic growth and employment, and stressed that policies affecting the sector must be implemented with transparency, fairness and proper stakeholder engagement.

He added the MRA is open to further discussions with the Finance Ministry to find a balanced and sustainable approach that supports both businesses and consumers.


TLDR : MRA ask delay SST or at least 2 million threshold to be SSTed ( okay finally we know which is high rent and low rent )

This post has been edited by nelson969: Jun 16 2025, 01:56 PM

KLCC shop kena SST ka?

Businessman kaya raya cannot tax? So tax who?

IF PuAs, we do not know what stupid taxes they will implement.

can tax, then don't kpkb when they pass the cost to consumer. Free market right?

Thank you PH, i voted for you

SST not affecting consumers??

FYI alot of industrial machinery that was previously 0% now kena 5% at least.. GGWP your bonuses next year.. then madani take that extra tax give dedak to b40..

why it is 0% previously? because we don produce these high end stuff locally...

Just need sacrifice one time implement all economic rationalization plan ie: subsidy , tax and e invoice

One time only, tahan nia, one time only, after this no more already telan saja, don't worry

REIT gg ? if they doesnt absorb tenant pay ?

can i get IGBREIT at 2.0 ?

If not chap fan seller got excuse to increase price 3 fold

They just roll back gst.

No need crack head use brain, which they dont have.

Damn, commercial REITs going to cut revenue

B40

gagaland said it is ok to naik harga

Only uneducated person will believed politicians talks no impact to low lvl income group when SST implementation.

This post has been edited by Ayambetul: Jun 16 2025, 03:15 PM

No free market. That's why need government.

If not companies will make slaves of the people

rental dah lah mahal, buat bisnis pun susah... skrg mau sst tax... so kitorang pass sst ni bagi consumer

Government can force companies to reduce their profit and absorb all the taxes? Only CCP do that.

Ang moh government do that their MNC straight run away, even emperor Trump also failed to tame the mega corporation

Bubble soon