Refined Sugar Or White Sugar Remains Tax-Free Under SST Revision
KUALA LUMPUR, June 20 (Bernama) -- Refined sugar (or commonly known as white sugar) remains tax-free under the revised Sales and Service Tax (SST) that will take effect on July 1, 2025, said the Ministry of Finance (MOF).
The MOF said in a statement today that raw sugar used in the production of refined sugar would be subject to a five per cent sales tax.
'However, as previously announced, manufacturers such as MSM Malaysia Holdings Bhd are eligible to apply for tax exemption on their raw materials and inputs.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
12 minutes ago
- The Star
SST on commercial rental will impact retail sector, says MRCA
PETALING JAYA: The Malaysian Retail Chain Association (MRCA) has called on the government to postpone the implementation of the 8% sales and service tax (SST) on rental and leasing services, due to come into effect on July 1. MRCA said while it recognises the government's intention to broaden the national tax base and enhance fiscal sustainability through targeted measures, extending SST to commercial rental presents considerable challenges to retailers operating physical outlets. ALSO READ: Expanded SST comes into effect July 1 "The additional cost burden comes at a time when many businesses are already contending with rising operational expenses, including minimum wage adjustments, stamping of employee contracts and heightened regulatory compliance," it said in a statement on Friday (June 20). "In the context of the supply chain from manufacturers and distributors to retailers, the increased cost of doing business is expected to translate into higher end prices for consumers," it added. ALSO READ: Expanded SST will add RM5bil to national coffers in 2025, RM10bil in 2026 MRCA said retailers across the board may find it increasingly difficult to absorb these additional expenses, particularly with a weaker consumer sentiment amid expectations of gradual government subsidy removal. MRCA said it will continue to engage with the Finance Ministry and relevant agencies to ensure that policy implementation remains balanced, transparent and conducive to the sustainable growth of the retail sector.
Daily Express
32 minutes ago
- Daily Express
No more imported food at official events, Anwar tells civil service
Published on: Friday, June 20, 2025 Published on: Fri, Jun 20, 2025 By: Bernama Text Size: Prime Minister Anwar Ibrahim urged civil servants and officials to be more mindful of the need to support homegrown produce. PUTRAJAYA: Prime Minister Anwar Ibrahim has directed all government departments to cease using imported goods, particularly food, at official events, in a bid to promote local products. Speaking at the finance ministry's monthly assembly, Anwar said that using local produce would not only bolster the local economy but would also open wider opportunities for local farmers to market their goods. Advertisement 'If every government department follows this directive, it will create more opportunities for our farmers to supply local food ingredients,' he said. The prime minister also cited the example of neighbouring countries whom he said were committed to using local food products at all official functions. 'In Laos, Vietnam, and Thailand, I've never been served imported food at any government-hosted official event. It's automatic for them to ensure that only local food is served,' he said. Anwar also criticised the preference by some parties for imported food products despite the government's clear stance. Advertisement Calling the practice inconsistent with efforts to empower the local economy, he urged civil servants and officials to be more mindful of the need to support homegrown produce. * 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
32 minutes ago
- Daily Express
No reason for price hike as refined sugar remains exempt from SST, Finance Ministry tells MSM
Published on: Friday, June 20, 2025 Published on: Fri, Jun 20, 2025 By: Bernama Text Size: Packets of sugar are stacked on shelves at a supermarket in Kuala Lumpur October 16, 2024. — Picture by Firdaus Latif Kuala Lumpur: Refined sugar (or commonly known as white sugar) remains tax-free under the revised Sales and Service Tax (SST) that will take effect on July 1, 2025, said the Ministry of Finance (MOF). The MOF said in a statement today that raw sugar used in the production of refined sugar would be subject to a five per cent sales tax. Advertisement 'However, as previously announced, manufacturers such as MSM Malaysia Holdings Bhd are eligible to apply for tax exemption on their raw materials and inputs. 'Hence, there is no reason for any increase in the price of refined sugar — especially since sugar refiners like MSM continue to receive monthly incentives from the government to ensure supply and price stability,' the MOF said. The MOF said this to clarify a statement issued by MSM regarding the impact of the sales tax revision on raw sugar. The ministry said the Madani Government has taken a targeted approach by not imposing taxes on essential goods such as sugar, salt, chicken, eggs, meat, fish, vegetables, cooking oil and rice. Advertisement 'This is to ensure that the majority of the people will not be affected by the SST revision,' it said. The MOF said sugar refiners and manufacturers in Malaysia can apply to the Royal Malaysian Customs Department for tax exemptions as provided for under Item 1, Column (2), Schedule B of the Sales Tax (Persons Exempt from Payment of Tax) Order. Yesterday, it was reported that national refined sugar producer MSM is reviewing the five per cent extension of SST involving raw sugar and is seeking further clarification from the government to monitor the impact on the prices of regulated goods. According to the MSM group chief executive officer, the retail price of sugar in Malaysia has been capped at RM2.85 per kilogramme since 2011, despite the global raw sugar price increasing in recent years. He said that if the tax was imposed on raw sugar, the country's refined sugar producers could pass on the cost to the industry. 'However, we cannot do that for sugar because it is under price control,' he said, adding that 75 to 80 per cent of MSM's production costs come from raw sugar. * 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
