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.



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

Source : Bernama
Image Credit : Sinar Harian , YouTube Papa Li , Astro Awani