Postpone expanded SST to January, urges ACCCIM
PETALING JAYA: The expanded Sales and Service Tax (SST) should be deferred to January next year, starting with 4% for the first two years, says the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).
'This will allow more time for adequate preparation, which is crucial for ensuring better compliance and smooth implementation,' it said.
In a statement yesterday, the association said: 'Our concern is that multiple cost increases are coinciding with a challenging global and domestic economic environment.
'This is exacerbated by the uncertainty surrounding trade tariffs policy and ongoing conflicts in the Middle East, which together create significant economic headwinds.
'The effects of rising costs, which have been felt in 2025, are expected to persist or influence the business and economic landscape in 2026.'
Earlier this month, the Finance Ministry said the expanded SST will begin on July 1 when a sales tax of 5% to 10% would be imposed on certain non-essential goods.
The service tax will also be expanded to include some financial services such as fund management, investment and merchant banking, and trade financing.
However, the government has also announced several revisions such as the exemption of SST on selected fruits, higher threshold for rental and leasing services, and an exemption on selected beauty services.
ACCCIM said yesterday that it had written to Prime Minister Datuk Seri Anwar Ibrahim to suggest a postponement of the expanded SST.
'We also asked that taxable services threshold registration to be raised higher to RM3mil for rental or leasing services, and construction services, and the threshold of exemption from paying tax for SME tenants be raised higher to RM2mil in annual sales,' it said.
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