SST exemption for residential projects, public facilities
28 Jul 2025 02:39pm
Companies and contractors that carry out contracts that do not allow for review will be granted a one-year exemption, subject to terms and conditions. - 123RF photo for illustration purpose only
KUALA LUMPUR - The government continues to support the construction sector by granting Sales and Services Tax (SST) exemptions for selected projects, particularly those involving residential buildings and public facilities, including houses of worship, recreational parks and public toilets, said Deputy Works Minister Datuk Seri Ahmad Maslan.
He said essential building materials such as cement, aggregate (gravel) and sand remain zero-rated under the sales tax to help reduce the burden on developers and ensure the continuity of infrastructure projects.
"Selected business-to-business (B2B) activities are subject to certain conditions. For instance, main contractors are subject to SST, but not to subcontractors earning below the threshold of RM1.5 million,' he said during an oral question and answer session at the Dewan Rakyat today.
Ahmad was responding to a question from Yusuf Abd Wahab (GPS-Tanjong Manis) regarding the categories of construction projects exempted from SST, as well as the ministry's steps to ensure that existing projects are not affected by its implementation.
In line with the government's commitment to implement SST fairly and effectively, he said, companies and contractors that carry out contracts that do not allow for review will be granted a one-year exemption, subject to terms and conditions.
"This incentive is part of the government's measures to ensure the construction industry has sufficient time to adjust the system, streamline the registration process and obtain accurate clarification on the implementation of SST," he said.
Meanwhile, Ahmad said that there has been no discussion to increase the threshold value for registration of taxable services for the construction sector from RM1.5 million to RM3 million.
He was responding to a supplementary question from Abdul Latiff Abdul Rahman (PN-Kuala Krai) regarding the industry's proposal for the threshold value for registration of SST taxable services to be increased from RM1.5 million to RM3 million, particularly for construction and rental and leasing categories. - BERNAMA
More Like This
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
8 minutes ago
- The Sun
13MP key milestone for Malaysia's medium-term development says Lee
KUALA LUMPUR: The tabling of the 13th Malaysia Plan (13MP) in Parliament marks a pivotal moment in shaping the nation's medium-term development, according to Alliance for a Safe Community chairman Tan Sri Lee Lam Thye. As Malaysia faces global economic uncertainty, technological shifts, climate challenges, and demographic changes, he described the plan as an opportunity to realign priorities, strengthen resilience, and drive sustainable progress. 'In general, the plan must be commended for its intent to address critical national challenges such as income inequality, digital transformation, green economy transition and institutional reform,' he said. Lee stressed that the plan's effectiveness relies on disciplined execution, transparency, and collaboration across government and society. He called for a robust monitoring system to track progress, alongside regular public reporting and audits to ensure accountability. Strong coordination between federal, state, and local agencies is essential to prevent inefficiencies, he added. Engagement with civil society and the private sector must continue beyond planning to maintain inclusivity. 'Development expenditure must be prioritised based on impact, equity, and sustainability, with a focus on reducing leakages and wastage,' Lee said. He also emphasised public service capacity building and institutional reforms, urging adaptability to global or domestic changes. - Bernama
Free Malaysia Today
41 minutes ago
- Free Malaysia Today
Nothing extraordinary about 13MP, says Ramasamy
Former Penang deputy chief minister P Ramasamy said the initiatives outlined for non-Malays in the 13MP appear 'more tokenistic than transformative'. PETALING JAYA : Former Penang deputy chief minister P Ramasamy has played down the impact of the 13th Malaysia Plan (13MP) tabled in the Dewan Rakyat yesterday, saying there is nothing extraordinary about it and that it mirrors the five-year plans introduced in the past. Ramasamy said Prime Minister Anwar Ibrahim had said that the 13MP would shift from an ethnic-based approach to one that was needs-based, adding however that in practice, the plan was 'largely a continuation of the status quo'. 'Whether the plan can be implemented effectively, especially given the rise in foreign debt, remains to be seen,' he said in a Facebook post. The Urimai chairman also dismissed the initiatives outlined for non-Malays, comparing them to the financial assistance provided to the Bumiputera community to encourage economic participation. The initiatives outlined for the Bumiputera community included plans to help more Bumiputera companies become publicly listed, and institutional support for Bumiputera entrepreneurs in the supply chain sector. Meanwhile, Ramasamay said, the Chinese community was promised the development of their new villages, and the focus for the Indian community was on expanding their participation in skills-based programmes. 'These gestures appear more tokenistic than transformative,' he added. The 13MP will involve a total of RM611 billion over five years, with major upgrades promised in transport, education, health, and renewable energy, among others. Anwar said RM430 billion in development funds would be from the government's coffers, while government-linked companies and government-linked investment companies would provide RM120 billion. The remaining RM61 billion will be derived from the private sector via private-public partnerships.
Borneo Post
an hour ago
- Borneo Post
Istana Negara: Sultan Ibrahim to make historic state visit to Russia
His Majesty Sultan Ibrahim, King of Malaysia will make history as the first Malaysian Head of State to conduct a state visit to Russia since the establishment of diplomatic relations in 1967. – Bernama photo KUALA LUMPUR (Aug 2): His Majesty Sultan Ibrahim, the King of Malaysia, will undertake a state visit to Russia from August 5 to 10, 2025, at the invitation of President Vladimir Putin. In a statement today, Istana Negara announced that His Majesty will make history as the first Malaysian Head of State to conduct a state visit to Russia since the establishment of diplomatic relations in 1967. 'This visit also reflects the important role of the Malaysian monarchy in advancing the nation's diplomacy,' it said. Istana Negara added that the visit will not only strengthen existing bilateral relations but also open new avenues for cooperation in various fields, including trade, higher education, technology, innovation, and people-to-people ties. As ASEAN Chair in 2025, Malaysia will also play a major role in enhancing strategic cooperation, particularly in the context of Russia's status as an ASEAN Dialogue Partner since 1996, it added. While in Moscow, Istana Negara said His Majesty Sultan Ibrahim will be accorded a state welcome ceremony at the Kremlin by President Vladimir Putin, followed by an official meeting between the two Heads of State. 'His Majesty will also attend a state banquet hosted by the President of the Russian Federation,' Istana Negara said. His Majesty is then scheduled to visit the Central Scientific Research Automobile and Automotive Engines Institute (NAMI) as well as the Tochka Kipeniya Technology and Innovation Hub. After concluding his programme in Moscow, His Majesty will travel to Kazan in the Republic of Tatarstan on Aug 8, 2025. Tatarstan is one of Russia's autonomous republics, with a Muslim-majority population. In Kazan, Istana Negara said His Majesty will be granted an audience with the Rais (Head) of the Republic of Tatarstan, Rustam Minnikhanov, and will tour a helicopter manufacturing and assembly facility. – Bernama King of Malaysia lead Sultan Ibrahim Sultan Iskandar Vladimir Putin
