Mydin boss slams SST on imported fruits, calls for exemption
Mydin Mohamed Holdings Bhd managing director Ameer Ali Mydin criticised the government's move to impose the sales and service tax (SST) on imported fruits, calling it 'nonsensical.'
Ameer argued that, contrary to popular belief, some imported fruits are also consumed by low-income groups and should be considered essential food items.
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The Star
36 minutes ago
- The Star
Gradual implementation less challenging on businesses, say traders
PETALING JAYA: A phased approach to the expanded Sales and Service Tax (SST) scope could help businesses transition more smoothly, say trade groups. SME Association of Malaysia president Chin Chee Seong proposed starting the rate at 2% for affected sectors. 'If possible, we hope the government reconsiders the implementation, but if it proceeds, it should be progressive. 'A direct 6% or 8% is too high and could lead to cash flow issues, forcing businesses to take bank loans,' he said in an interview yesterday. Chin called on businesses nearing the threshold to register for SST early. 'You can project your revenues. If you hit the mark, you pay; if not, you're still prepared.' He also suggested making authorities more accessible, possibly through an AI chatbot, to assist with queries. Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong also recommended a gradual service tax implementation, starting at 4% instead of jumping to 8%. 'A progressive approach offers a cushion for businesses to adjust,' he said. On the grace periods, Koong said it can be challenging especially for the construction sector. While non-reviewable contracts are given a 12-month grace period, he said most drafted contracts are reviewable. He called for a 36-month grace period for both reviewable and non-reviewable contracts in the construction sector due to the duration of projects and contract complexities. Federation of Malaysian Business Associations vice-chairman Nivas Ragavan said the grace period provides breathing space but compliance requirements must be made clear to avoid confusion or complacency. 'A phased implementation is more SME-friendly and allows for data-driven adjustments if inflation or consumer impact is severe,' he said. Nivas also cautioned that retrospective SST payments could force SMEs to absorb uncollected taxes, suggesting a dedicated helpline or portal to address these concerns. Putrajaya Hawkers and Small Traders Association president Juhaidi Yean Abdullah expressed concerns about consumer impacts. 'While most members haven't met the SST threshold, there is worry over price increases. 'Members would prefer not to raise prices, but the tax expansion might necessitate passing costs to consumers,' he said.
The Star
36 minutes ago
- The Star
‘Make use of SST grace period'
PETALING JAYA: Companies are required to make retrospective Sales and Service Tax (SST) payments during the grace period, even if the tax was not collected from customers. This obligation arises once firms meet the SST threshold requirements, as stipulated by the Sales Tax Act 2018 and the Service Tax Act 2018. A Finance Ministry spokesman explained that the law deems firms taxable even before registration. 'The grace period until Dec 31 means no prosecution or penalties if registration is completed voluntarily within this time,' the spokesman said. However, companies must still account for and pay the tax owed for past periods during which they were liable but unregistered. The spokesman noted that the Customs Department may assess retrospective tax liability from the date a company meets registration requirements. 'This includes SST on sales or services provided, regardless of whether the tax was collected from customers,' added the spokesman. ALSO READ: Gradual implementation less challenging on businesses, say traders The government announced on June 9 that Sales Tax rates would be revised and the scope of Service Tax would expand, effective July 1. Essential goods' Sales Tax remains unchanged, while a 5% or 10% rate applies to discretionary and non-essential goods. New services like leasing or rental, construction, financial services, private healthcare, education and beauty services are now included under Service Tax. The SST registration threshold varies according to sector – ranging from RM500,000 to RM1.5mil in turnover within 12 months. The expanded SST takes effect on July 1, with a grace period until the end of the year, allowing time for compliance without penalties. Despite the grace period, tax experts say the SST obligations remain. Christine Koh, a partner at Owen KLCA PLT, said businesses should conduct an early review of goods and services to identify taxable items or services. 'Monthly turnover should be tracked, and register yourselves once the threshold is breached.' She also advised updating invoicing and accounting systems, and training finance and sales teams on SST procedures. Koh noted that businesses that have not registered can do so in August and start charging from Sept 1, with separate registration numbers for Sales and Service Tax. 'For instance, a manufacturer registered for Sales Tax must register separately for Service Tax if they earn RM800,000 from rentals,' she said. KPMG Malaysia's Indirect Tax head, Ng Sue Lynn, said businesses with multiple income streams should begin identifying all taxable services and classifying them under the appropriate groups. 'Different taxable services need to be reported in their respective categories accordingly, and may be subject to different Service Tax rates. They may also be eligible for different exemptions.'Proper segregation of income streams supports accurate tax compliance and helps manage risks,' Ng said. 'Businesses are encouraged to assess their operations early, engage with customers and suppliers to reduce disputes, and document compliance efforts to demonstrate due diligence,' she said.
Focus Malaysia
2 hours ago
- Focus Malaysia
PMX's decree to stop using imported stuff at gov't functions defies commonsense, gets bashed
'ANWAR seems to have really lost the plot – that's not just my personal observation but also the sentiment echoed across several of my circles,' observed industrialist/thinker khalid karim STEMKITA (@khalidkarim in a recent post on X referring to Prime Minister Datuk Seri Anwar Ibrahim. 'Even some of his once-loyal supporters are expressing deep disappointment. I'm disappointed but still hoping he can turn it around.' Anwar seems to have really lost the plot — that's not just my personal observation, but also the sentiment echoed across several of my circles. Even some of his once-loyal supporters are expressing deep disappointment. I am disappointed but still hoping he can turn it around — khalid karim STEMKITA (@khalidkarim) June 19, 2025 Without a shadow of doubt, PMX seems to be getting a lot of flak lately for a series of pronouncements that not only seem to defy logic but detached or out-of-touch with man-on-the-street Malaysians. First, Anwar who doubled up as the Finance Minister was chastised for referring to GST as 'general services tax' in wanting to impose 'a little more tax' on avocado which implies imported fruits as part of Malaysia's expanded Sales and Services Tax (SST) which takes effect on July 1. His latest decree? For official government functions to stop using imported food items in a bid to promote the use of local products. Anwar has directed all government departments to stop using imported goods, especially food, at official events in a bid to promote local — The Star (@staronline) June 20, 2025 For this, the reformist Madani government commander-in-chief found himself widely ridiculed for his instruction with many of his subjects pouring scorn on the Pakatan Harapan (PH) chairman's eureka moment. Many commenters on The Star's X feed wittily pointed out that even basic food items such as mee siam or cekodok pisang (literally, 'fried banana balls') would contain imported stuff. A very unimpressed Aunty Ana (@Ana_makhzan) counselled PMX to try doing some research before making such lofty pronouncements (in the future). '@anwaribrahim, @fahmi_fadzil. I hope this is a joke. Ask @MSabu_Official (for) we import onions, garlic and dried chillies, hence there're imported material in mihun goreng (fried rice vermicelli),' lectured the commenter. 'Even the cekodok made from local banana contains imported wheat flour. Next time do verify first before issuing an instruction.' One commenter even accused PMX of targeting Chinese fruit importers with this decree while another suggested that tapioca should be made a staple at parliamentary functions in accordance with the call by Dewan Rakyat speaker Tan Sri Johari Abdul to resort to ubi kayu than to merely rely on rice. Other commenters chided PMX for not leading by example. Just use local marques instead of fancy luxury car models or even to stop barring the use of Evian mineral water or to start serving musang king durian at government events. One commenter observed that this was the same modus operandi implemented when Anwar was the finance minister during the 1998 Asian Financial Crisis. The response was no less scathing on the X feed of Malaysiakini. Anwar larang makanan import dalam acara rasmi — Malaysiakini (BM) (@mkini_bm) June 20, 2025 One commenter wryly observed that there would be no more buah kurma (dates) which is almost standard at government buka puasa functions during the fasting month. This news was also seized upon by a few commenters as a stick to beat PMX on the scarcity of local rice issue. One commenter came up with a brilliant alternate suggestion to save costs – just have fewer official functions while another wished the Madani administration best of luck given most local fruits at seasonal while those which are not such as bananas, guavas and pomelos have limited production (or even costlier). The temperature is definitely rising with the disgruntled comments seem to indicate. Has the long struggle to claim Putrajaya to be defined by a tenure scarred by the costs-of-living crisis, exacerbated by the Madani administration's numerous taxes? Judging by the tone of many commenters, it would appear PMX's popularity has taken yet another beating. Nobody said it was an easy job to be the #1 man in the country but perhaps it is advisable for PMX to rely on scripted text than to speak off the cuff on unfamiliar or complicated subjects. – June 21, 2025 Main image credit: Anwar Ibrahim/Facebook
