PETALING JAYA: The Finance Ministry has reportedly pushed back the implementation of the expanded Sales and Service Tax (SST), a move which was initially slated for May under Budget 2025.
According to The Star, a ministry spokesman said consultations with various industries nationwide have been completed to determine the final scope and tax rates.
“The guidelines and scope are now being refined to ensure a smooth implementation,” the spokesman was quoted as saying.
Separately, The Edge reported that Royal Malaysian Customs Department (JKDM) director-general Datuk Anis Rizana Mohd Zainudin said the gazettement of the new tax changes is expected by June 1.
JKDM is reportedly the agency responsible for implementing and enforcing the expanded SST.
During the tabling of Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim announced that the SST would be increased from six per cent to eight per cent starting May 1 this year, as part of efforts to boost government revenue.
Anwar also said that basic food items would continue to be exempt from the SST, although luxury goods such as imported salmon and avocados would be subject to the tax.
Finance Minister II Datuk Seri Amir Hamzah Azizan said that the expanded SST would cover new areas, including business-to-business (B2B) transactions that were previously not taxed.
