Starting July 1, the Finance Ministry will implement an expanded Sales and Service Tax (SST) framework that will affect various goods and services. While basic necessities remain exempted, non-essential items will see sales tax rates of 5% or 10%, and several service sectors will now fall under the expanded service tax net, ranging from 6% to 8%.

Below is a summary of the updated tax structure:

Sales Tax | 0% (Exempted Items)

Essential goods such as:

Also exempted:

5% Sales Tax | Applies to selected non-essential and luxury goods:

10% Sales Tax | Levied on:

Service Tax


1. Rental or Leasing Services – 8%

Applies to service providers with annual income exceeding *RM500,000*.

Exemptions:

2. Construction Services – 6%

For providers with contracts exceeding RM1.5 million.

Exemptions:

3. Financial Services – 8%

Applies to fee- or commission-based services.

Exemptions:

4. Private Healthcare – 6%

Applies to private medical, traditional and complementary medicine, and allied health services for foreigners from providers with income over RM1.5 million.

5. Education Services – 6%

Applies to:

Exemption:

6. Beauty Services – 8%

Includes hairdressing, facial treatments, and similar services from providers earning over RM500,000 annually.

This expansion of SST is aimed at broadening the tax base while protecting essential goods and services.

Source : Bernama
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