SST revision exempts 75 pct of SMEs, says Samenta
Datuk William Ng
KUCHING (June 28): The revision to the expanded Sales and Services Tax (SST) will exempt approximately 75 per cent of small and medium enterprises (SMEs) from the additional eight per cent tax on rental and financial services, according to the Small and Medium Enterprises Association Malaysia (Samenta).
Samenta national president Datuk William Ng described the move as a 'welcome and meaningful relief.'
'We are grateful to the Prime Minister for hearing our concerns and for directing the Ministry of Finance to revise the threshold upwards,' he said in a statement issued today.
The statement was made in response to the Ministry of Finance's announcement on the revised SST implementation, which includes a higher annual sales threshold for service tax on rental and financial services.
Ng noted that Samenta was among the first to raise concerns over the potential impact of the SST expansion on SMEs when it was initially announced.
He said the association had urged the government to raise the threshold to protect smaller businesses, while still supporting a broader and fairer tax base.
'While we will continue to advocate for a balanced and SME-friendly approach in future tax reforms, we consider this matter concluded and will not seek further concessions on the SST expansion,' he added.
In the meantime, Ng urged affected SMEs to take immediate steps to implement the expanded SST and to contact the Royal Malaysian Customs Department for assistance if needed.
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