Latest news with #SalesandServicesTax
Borneo Post
5 hours ago
- Business
- Borneo Post
SST revision exempts 75 pct of SMEs, says Samenta
Datuk William Ng KUCHING (June 28): The revision to the expanded Sales and Services Tax (SST) will exempt approximately 75 per cent of small and medium enterprises (SMEs) from the additional eight per cent tax on rental and financial services, according to the Small and Medium Enterprises Association Malaysia (Samenta). Samenta national president Datuk William Ng described the move as a 'welcome and meaningful relief.' 'We are grateful to the Prime Minister for hearing our concerns and for directing the Ministry of Finance to revise the threshold upwards,' he said in a statement issued today. The statement was made in response to the Ministry of Finance's announcement on the revised SST implementation, which includes a higher annual sales threshold for service tax on rental and financial services. Ng noted that Samenta was among the first to raise concerns over the potential impact of the SST expansion on SMEs when it was initially announced. He said the association had urged the government to raise the threshold to protect smaller businesses, while still supporting a broader and fairer tax base. 'While we will continue to advocate for a balanced and SME-friendly approach in future tax reforms, we consider this matter concluded and will not seek further concessions on the SST expansion,' he added. In the meantime, Ng urged affected SMEs to take immediate steps to implement the expanded SST and to contact the Royal Malaysian Customs Department for assistance if needed.
The Star
8 hours ago
- Business
- The Star
Dr Wee: Review expanded SST
PETALING JAYA: Apart from a longer list of goods taxable under the expanded Sales and Services Tax (SST), another major concern of the people is the tax on raw materials and machinery, says Datuk Seri Dr Wee Ka Siong (pic). The MCA president said this will then set off a wave of price increases down the line, causing more pressure on the people. 'The SST brings a cascading effect because the raw materials and machinery will also be taxed after this. 'This silent inflation wave will surely be felt by all levels of society throughout the coming months,' said the Ayer Hitam MP in a Facebook video yesterday. He pointed out that back in 2018, more than 8,000 items were exempted from the SST. Under the expanded tax scheme set to take effect on July 1, the list has been significantly shrunk to only around 1,000 items, he said. He added that the expanded SST will not only apply to wellness and beauty-related services, it will also be applied to traditional products such as red dates, black fungus, dried longan and snow fungus. He stressed that many industries including rubber, plastics, medicine and oil palm, and the manufacturing sector have voiced their concerns about the expanded scheme as about 97% of goods in the market will be taxed. 'While we welcome the government's U-turn on the tax for imported fruits, it is not enough. 'The real issue and danger lies in the taxation of raw materials and industrial machinery,' he said. 'Politics aside, the people's welfare should be prioritised. It is better for the government to review the scheme or scrap it altogether,' he said, adding that the SST rate had already increased (from 6% to 8%) on March 1, last year. Dr Wee added that it was unfortunate that the expanded SST will start on July 1, the same day that the base electricity tariff and Port Klang tariffs are set to increase. 'The obvious solution for the government is still the GST, which is a fairer and more transparent taxation system. 'The main difference between both systems is that the GST taxes the end user – you use more, you pay more – while the SST taxes all levels of the supply chain and the end user has to pay a far higher price in the end,' he said. 'The GST ensures the stability and strength of the country while the SST will further burden the people and give businesses an excuse to raise prices,' he stressed. In announcing the expanded SST, the Finance Ministry said the measure is to strengthen the country's fiscal position by increasing revenue and broadening the tax base.
The Star
8 hours ago
- Business
- The Star
Delay expanded SST to next year amid global uncertainty, urges ACCCIM
PETALING JAYA: The government should reconsider implementing the expanded Sales and Services Tax (SST) next year to allow more time for preparation, says the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM). The group said adequate preparation is crucial for ensuring better compliance and smooth implementation. "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," it said in a statement on Saturday (June 28). It added that the proposed postponement of the SST implementation was among the issues raised in a letter submitted to Prime Minister Datuk Seri Anwar Ibrahim. "We have respectfully urged the government to defer the implementation of SST to January 2026, starting with 4% for the first two years. "We also asked that taxable services threshold registration be raised higher to RM3mil for rental or leasing services, and construction services, and the threshold of exemption from paying tax for SMEs tenants be raised higher to RM2mil annual sales. "We also proposed a longer exemption period of 36 months for non-reviewable and reviewable contracts to cover all project types due to the type of projects and project cycles," it said. ACCCIM also noted that while the higher SST threshold for rental and leasing services, as well as small and medium enterprise (SME) tenants, will ease compliance and financial burden, a further increase would be more suitable. "Higher threshold is better aligned with the definition of SMEs for the services and other sectors," it said. On the Finance Ministry's recent adjustments to fine-tune the SST framework, ACCCIM said it was a welcome move that they take cautiously. "We cautiously welcomed the government's announcement on the review of the expanded SST, taking into account ACCCIM's concerns and feedback. "This includes matters regarding the timing, spillover effects, scope of SST expansion, SST rate and the registration threshold of taxable services," it said. The revision includes the exemption of SST for selected fruits, higher threshold for rental and leasing services, financial services and the exemption of selected beauty services.
The Star
a day ago
- Business
- The Star
Apples and oranges get SST exemption after public complaints
PUTRAJAYA: The government has decided to exempt apples and oranges from the Sales and Services Tax (SST) but Datuk Seri Anwar Ibrahim still feels it is better for people to eat a local banana a day instead of apples. However, since many people, including the B40, eat imported apples and oranges, which are usually cheaper than other imported fruits, these fruits will get an exemption. The Prime Minister said that although it was better to eat local fruits like papayas and bananas, the Cabinet decided yesterday to exempt these popular foods. 'There's really no need to eat imported foods. I noticed that avocados are even being grown in Sabah. However, after many request from the public, we decided to compromise with apples and oranges,' he told the media after launching the Kota Madani project in Precinct 19 here. 'However, there will be no exemptions for other imported fruits as we have many local fruits (to choose from). 'The (sales value) threshold will now be increased from RM500,000 to RM1mil. There will be further announcements and clarification on this,' said Anwar. In his speech, he said there were people who complained that villagers still want apples. 'They say, 'It's a saying from the past – an apple a day keeps the doctor away.' 'That's not true. Actually, a banana a day is better – because bananas are high in potassium,' said Anwar. On June 9, the government announced a targeted review of the SST rate, from July 1, 2025. The sales tax rate would remain the same for essential goods, while a rate of five or 10% will be imposed on non-essential or discretionary goods. On June 19, the government stated that it will review the implementation of the revision and expansion of the SST on several selected imported goods, including fruits such as apples and mandarin oranges. Earlier this week, the Kuala Lumpur Fruit Wholesalers' Association stated that consumers may have to pay much more for imported fruits from July 1. Importers said they faced a double whammy with the 5% SST on fruits and 30% increase in freight charges at Port Klang. Currently, many imported fruits are already subject to duties ranging from 5% to 30%, depending on their countries of origin and type.
Borneo Post
a day ago
- Business
- Borneo Post
Hold inclusive consultations before policy announcements, Dapsy S'wak treasure tells Putrajaya
Wong says the government's initial announcement of the SST had sparked widespread public concern. KUCHING (June 27): The federal government has been urged to conduct thorough consultations involving all relevant stakeholders prior to announcing and implementing any new policy, said Democratic Action Party Socialist Youth (Dapsy) Sarawak treasurer Wong King Yii. He said the government's initial announcement of the Sales and Services Tax (SST) had sparked widespread public concern. 'I welcome the recent announcement by Prime Minister Datuk Seri Anwar Ibrahim to exempt imported apples and oranges from the SST. 'This decision reflects the government's willingness to listen to the voices of the people, especially at a time when many are grappling with the rising cost of living,' he said in a statement. Wong added that a more inclusive and communicative approach would result in a more stable, forward-thinking policymaking, thereby reducing the need for reversals. He also pointed out that apples and oranges are essential sources of daily nutrition for many households that are not easily substitutable. 'By exempting the fruits from SST, the government not only eases the financial burden on the people, but also helps safeguard public health and basic nutritional needs,' he said. 'That said, while I acknowledge the positive impact of this adjustment, I remain concerned over the recent trend of frequent policy U-turns. 'Inconsistencies in major policy decisions can weaken public trust and create unnecessary confusion for both businesses and consumers,' he added. Moving forward, Wong hopes the government would adopt a more open, considerate decision-making process, which incorporates public input and helps rebuild confidence in the country's public institutions. DAPSY lead SST Wong King Yii
