Builders' body urges govt to reconsider SST on construction sector
The Master Builders Association Malaysia said the construction industry was already subject to multiple layers of taxation across various aspects of project execution.
PETALING JAYA : The Master Builders Association Malaysia (MBAM) has called on the government to reconsider expanding the sales and service tax (SST) to the construction industry.
In a statement, MBAM president Oliver Wee said the construction industry was already subject to multiple layers of taxation across various aspects of project execution, including building materials, labour and equipment.
Wee said introducing a new tax – especially with the potential for retrospective application – would seriously disrupt existing contractual obligations, budgets and project timelines.
'Given the critical role the construction industry plays in national development and economic stability, MBAM respectfully appeals to the government to reconsider the imposition of SST on construction services,' said Wee.
'It is essential to maintain a stable, predictable, and sustainable operating environment for the industry to continue supporting Malaysia's growth and development.'
Wee said if the implementation of the 6% SST was 'inevitable', MBAM was of the view that the rate be reduced from 6% to 4% due to the large contract values in the industry.
He suggested that the SST should only be levied on the service portion of the contract value, with the non-service portion – including building materials and other hardware – to be exempted.
Wee also hoped Putrajaya would consider postponing the introduction of the SST on the construction industry as the July 1 implementation date provided insufficient lead time for the industry to respond.
He said a reasonable grace period must be granted to allow all stakeholders to make necessary adjustments and financial preparations.
The finance ministry yesterday said an expanded sales and service tax would be implemented from July 1, which will see a sales tax of 5%-10% imposed on selected and non-essential goods.
The service tax will be expanded to include new services such as construction, rental or leasing, finance, private healthcare, education and beauty.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
an hour ago
- Malay Mail
Tengku Zafrul: Google's Malaysia investment to boost AI growth, create jobs
KUALA LUMPUR, June 22 — Tech giant Google's investment in Malaysia is expected to continue driving Malaysia's artificial intelligence (AI) and cloud computing economy. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who is currently on a working visit to Washington, United States, met with Google representatives to discuss how the company can continue to drive AI development in Malaysia, strengthen cybersecurity and invest in digital skills. 'The government is committed to providing full support and ensuring a conducive investment climate for high-quality investments,' he said in a Facebook post. He added that Google's strategic investment of RM9.4 billion to set up its first data centre and Google Cloud region in Malaysia is expected to generate RM15.04 billion in long-term economic impact and create 26,500 jobs by 2030. 'Thank you, Google, for your continued confidence in Malaysia. Together, we are building a brighter digital future,' he said. — Bernama
Malay Mail
3 hours ago
- Malay Mail
Sellers of fake gold face RM500,000 fine, jail as ministry warns TikTok traders over misleading jewellery labels
PUTRAJAYA, June 22 – Businesses selling gold-plated or imitation precious metal jewellery must clearly label such items with the term 'plated', the Domestic Trade and Cost of Living Ministry warned amid a rise of sales on TikTok. New Straits Times quoted ministry enforcement director Azman Adam saying companies and individuals who fail to do so face fines of up to RM25,000 and RM10,000 respectively, while individuals could also face up to a year in jail, or both. 'The aim [of the regulations] is to protect consumers from fraud and ensure transparency in the precious metals market,' he was quoted saying. He emphasised that online sellers are also bound by the Consumer Protection (Electronic Trade Transactions) Regulations, which require full disclosure of product details under Schedule 3. 'Any person who uses false trade descriptions regarding the purity of precious metals may also be prosecuted under Regulation 8 of the Trade Descriptions (Articles Made of Precious Metals) Regulations,' he added. This comes as Malaysia Gold Association president Datuk Louis Ng called for a ban on 'gold-wrapped' products, saying they could be mistaken as real gold. However, Azman reportedly said the ministry has not yet received any complaints over the matter. Azman said such offenders can also be charged under Section 5 read with Section 6(f) of the Trade Descriptions Act, under which corporate bodies can be fined up to RM250,000, and up to RM500,000 for repeat offences. Non-corporate offenders may be fined up to RM100,000 or jailed for up to three years, or both, upon conviction. He stressed that sellers must also issue receipts stating the item's specifications as required by Regulation 9 at the time of sale. Azman also cautioned traders against using uncertified gold scales or engaging in fraudulent weighing, offences punishable by fines up to RM40,000, three years' jail, or both under the Weights and Measures Act. He added that misleading sales practices may be investigated under the Consumer Protection Act, and affected consumers can file complaints with the Tribunal for Consumer Claims Malaysia.
Malay Mail
3 hours ago
- Malay Mail
Socso urges job seekers to look beyond home states for better job opportunities
KANGAR, June 22 — Job seekers have been urged to be more open to challenges, by considering employment opportunities beyond their home states, rather than limiting themselves to local job options. The Social Security Organisation's (Socso) Employment Insurance System (SIP) Office head, Datuk Asri Ab Rahman, said that job seekers should adopt a more flexible mindset, and be willing to accept suitable job offers, even if they are located in other states, as long as the positions offer long-term prospects and stability. 'Sometimes, job mismatches occur, not due to a lack of opportunities, but because candidates are unwilling to relocate. However, such cases are relatively isolated and tend to occur only in specific states,' he told reporters after attending the opening ceremony of the MYFutureJobs Career, Education & Entrepreneurship Carnival — Perlis 2025, here yesterday. The two-day career carnival, which began yesterday, was launched by Perlis State Secretary Datuk Rahimi Ismail. Meanwhile, Socso, in a statement, said that a total of 74,576 job seekers nationwide have successfully secured employment through placement programmes conducted in collaboration with various stakeholders. 'This achievement not only demonstrates the commitment of all involved in enhancing employment opportunities, but also offers new hope for job seekers to build a better future, through ongoing collaborative efforts,' it said. It also noted that between January and June 13, Perlis Socso organised 33 open interview programmes, resulting in 522 individuals successfully securing new employment. It added that a total of 14 individuals received Socso benefits, amounting to RM239,732.90, in conjunction with the carnival's opening ceremony yesterday. The benefits were provided under the Employees' Social Security Act 1969 (Act 4) and the Self-Employed Social Security Act 2017 (Act 789), covering various categories, including temporary disability benefit, permanent disability benefit, Survivors' Pension, and Invalidity Pension. — Bernama
