Exclusion of imported food from SST won't affect RM10b target
THE recent exclusion of selected imported food items from the expanded Sales and Service Tax (SST) is not expected to impact the government's RM10 billion tax revenue target, said Finance Minister II Datuk Seri Amir Hamzah Azizan (picture).
The government recently revised the SST expansion to exclude some imported foods such as apples, oranges and dates. Amir noted that the government made certain adjustments based on public feedback.
'These are things that are probably now part and parcel of the norm in society,' he said during his fireside chat 'Malaysia: Macro Resilience, Fiscal Consolidation' at the Invest ASEAN-Malaysia Conference 2025 today.
Despite ongoing fiscal adjustments, the government remains confident in meeting its collection targets.
'We are confident because the economy is still puttering along…I do know my team is always very conservative in the estimate,' he added.
On a different note, Amir Hamzah pointed out that the government has increased the service tax registration threshold for leasing, rental and financial services from RM500,000 to RM1 million, which was to ensure that small and medium enterprises in Malaysia are not affected.
'It goes back to the philosophy of much more progressive, targeted approaches as opposed to blanket mechanisms. When we decided to do the revision, we also looked at what was going to be the impact on financials,' he said.
On June 27, the government announced a revision to the SST framework, following extensive feedback from the public and engagement with industry stakeholders on the proposed expansion.
Imported mandarin oranges and dates are exempted from the SST, while essential goods such as rice and local fish will remain tax-free.
The government has also exempted the proposed service tax on beauty and personal grooming services such as manicures, pedicures, facials, barber services and hairdressing.
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