Malaysia drops beauty tax, eases SST rules after feedback
PETALING JAYA: The government has announced three key amendments to the Sales and Service Tax (SST) following public and industry feedback since the revision was unveiled on June 9.
In a statement yesterday, the Finance Ministry said the amendments include exempting certain imported fruits from sales tax, raising the service tax threshold for rental and financial services to RM1 million and dropping the proposed tax on beauty services.
'After due consideration on the feedback received with respect to sales tax on imported fruits, Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance minister, agreed to exempt imported apples, oranges, mandarin oranges and dates from sales tax.
'The ministry would like to reiterate that the Madani government has not imposed sales tax on daily essential goods in order to mitigate pressure on the cost of living for the majority of Malaysians.
'These tax-exempted essential goods, whether locally produced or imported, include rice, chicken, beef, vegetables and eggs. Local fish varieties, including selar, tongkol, cencaru, and sardines will also continue to be exempt from sales tax.'
To ease the burden on small businesses, Anwar has approved an increase in the service tax registration threshold from RM500,000 to RM1 million for leasing, rental, and financial services.
'Additionally, after carefully considering public sentiment, the government has also decided not to proceed with the proposed expansion of service tax on beauty services such as manicure and pedicure, facial service, barbers and hairdressers,' said the ministry.
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