Latest news with #PETALINGJAYA
The Sun
10 hours ago
- Business
- The Sun
Three key amendments to SST following 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.
The Sun
10 hours ago
- Business
- The Sun
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.
The Star
11 hours ago
- Business
- The Star
Smile, no SST for facials now
Haircut minus the guilt: Stylist Joseph Low cutting the hair of a client in Bandar Kinrara, Puchong. — AZHAR MAHFOF/The Star PETALING JAYA: Those going to beauty parlours can smile now –manicures, pedicures, facials and haircuts will remain exempted under the expanded Sales and Service Tax (SST). The government has issued a revised tax list, following public concern and feedback, to cushion the impact of the tax on the people and small businesses. In a broader move to manage cost-of-living pressures, the government will also exempt selected imported fruits – apples, oranges, mandarin oranges and dates – from the sales tax. The Finance Ministry said the decision was made by Prime Minister Datuk Seri Anwar Ibrahim, who also holds the finance portfolio, after taking into account widespread sentiment ahead of the SST expansion from July 1. The ministry, in a statement, reaffirmed that essential food items such as rice, chicken, beef, vegetables, eggs and various local fish – including selar (yellowtail scad), tongkol (longtail tuna) and cencaru (torpedo scad) – whether fresh, chilled or frozen, remain exempt from the tax. These types of fish are staple protein sources for many households due to their affordability and accessibility. The SST will also not be imposed on the purchase of gold, said Treasury secretary-general Datuk Johan Mahmood Merican. He said the government decided not to tax gold purchases as it is a medium of investment, and for cultural and economic reasons, too. 'Gold bars and jewellery are often considered investment tools or savings. 'From a cultural perspective, gold plays an important role in various communities, often given as symbolic gifts or blessings during significant life events such as the birth of a child or weddings. 'Even if you walk into a jewellery shop to buy a gold necklace or similar items, no tax will be imposed,' he said in a Finance Ministry TikTok live session titled 'SST Naik, Semua Harga Pun Naik?' (SST Gone Up, All Prices Going Up Too?). Johan noted that some businesses also use gold as collateral to obtain operational funds or loans. On the fruits getting exemption, he said although apples and oranges are not cultivated in Malaysia, they are integral to daily life. He also pointed out that during Chinese New Year or Hari Raya, the demand for these fruits – including mandarin oranges and dates – are particularly high, justifying the tax exemption. Johan noted that fruits like locally-grown banana will not be taxed, while imported fruits like strawberries, blueberries and avocados are considered 'selective items', and will continue to be taxed. 'The cost of our 'pisang goreng' will not increase. But if imported bananas are used, they will be taxed,' he said. Hairdressers and beauty salon operators had voiced concern that taxing their services would unfairly burden small businesses and lower-income consumers. To reduce the burden on small businesses, the annual sales threshold for mandatory service tax registration has been raised from RM500,000 to RM1mil for leasing, rental and financial services. This means only companies generating over RM1mil in yearly sales from such services will be required to charge the 8% tax. For financial services, the tax applies specifically to fee- or commission-based activities. The ministry also reminded the public and stakeholders to refer only to verified information on the SST rollout, including official announcements, guidelines, FAQs and subsidiary legislation available through the Finance Ministry and Customs Department websites. Further enquiries can be directed to the Customs Department SST Call Centre at 1-300-888-500 or through the dedicated hotline numbers.
Daily Express
a day ago
- Business
- Daily Express
Beauty services exempted from expanded SST
Published on: Friday, June 27, 2025 Published on: Fri, Jun 27, 2025 Text Size: Services like manicures, pedicures, facials and hairdressing will continue to be exempted from SST. (Envato Elements pic) PETALING JAYA: The finance ministry has decided not to include beauty services under the expanded sales and service tax (SST) which comes into effect on July 1. The Treasury said the decision was made by Prime Minister Anwar Ibrahim, who is also finance minister, in view of public sentiments. This decision means that services like manicures, pedicures, facials and hairdressing would be exempted from the expanded SST. An 8% service tax rate was set to be imposed on the sector for services exceeding RM500,000 in a 12-month period. Former finance minister Lim Guan Eng had warned that this would anger women voters and called for the expanded SST to be postponed as a whole. In a statement, the ministry also said mandarin oranges and dates would be exempted from SST. 'The ministry would like to reiterate that the Madani government has not imposed any 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 – whether frozen, chilled or fresh – will also continue to be exempted from the sales tax,' it said. Yesterday, Anwar announced that imported oranges and apples would be exempted from the SST as many from among the B40 income group would buy these fruits as they were affordable. Putrajaya has also decided to raise the service tax registration threshold for leasing or rental and financial services from RM500,000 to RM1 million, to reduce the number of small businesses that would be affected. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
a day ago
- Business
- Daily Express
Why last-minute revamp of 13th Malaysia Plan, Rafizi asks government
Published on: Friday, June 27, 2025 Published on: Fri, Jun 27, 2025 By: FMT Reporters Text Size: Former economy minister Rafizi Ramli said the 13th Malaysia Plan is an important document for the nation. PETALING JAYA: Former economy minister Rafizi Ramli has questioned the government's decision to revamp the 13th Malaysia Plan (13MP), slated to be tabled in Parliament at the end of July. Rafizi said the last-minute overhaul of the next five-year development plan would raise concerns among the civil servants who prepared the 13MP, market analysts, and Malaysians as a whole. The PKR MP for Pandan also asked whether the changes would be rushed since there would be insufficient time to refer the plan to the inter-agency planning group, the technical working group, and experts who formulated the initial 13MP. 'Why is this overhaul of the 13MP arising now when there was no such issue raised when the economy ministry and I tabled the contents of the 13MP previously? 'The 13MP is an important document for the nation and Malaysians, developed by thousands of Malaysians from various segments of society. If we're not careful, the 13MP will be dragged into political polemics which would end up affecting the people's confidence in the final document. 'If this happens, it would be a great injustice to those who worked hard on the 13MP over the past year,' he said in a statement. Earlier today, the government announced that finance minister II Amir Hamzah Azizan has taken on the duties and functions of the economy portfolio, and given the duty of overhauling the 13MP. Amir said he had received 'a lot of feedback' from his Cabinet colleagues on the plan, which necessitated an overhaul of the document. Rafizi said the preparation of the 13MP started in September 2024 when feedback was obtained from all stakeholders, first through the inter agency planning group which involved every government ministry and agency. Then, he said, there was a technical working group comprising policy experts in specific areas, from health, fiscal and education reforms to micro, small and medium-sized enterprises. He said there were also numerous engagements between the economy ministry and state governments, industry players, and MPs from September to December 2024. 'At the same time, there was a 'top down' process, namely the development of key policies that were bold and radical, running concurrently involving the economy ministry and experts. 'These policies, categorised according to the various fields, were identified as key catalysts for structural reforms in those areas. These bold and radical policies that were proposed may not have been acceptable to the relevant ministries. 'That's why I tabled them to the prime minister multiple times beforehand between February to April, and tabled it twice to the Cabinet to achieve a compromise and consensus,' he said. Rafizi said there was a tight schedule to prepare and tabled the 13MP compared with previous Malaysia plans. He also said the 13MP was fully developed by civil servants without the involvement of external consultants. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
