SST expansion postponed, says report
A finance ministry spokesman said the expanded SST would be introduced at a later date. (Facebook pic)
PETALING JAYA : The Treasury's planned expansion of the sales and service tax, or SST, has been postponed, according to a news report.
The Star quoted a finance ministry spokesman as saying the expanded SST would be introduced at a later date, adding that its scope is being refined.
The spokesman also said the Treasury had already carried out engagements nationwide with various industry players as part of finalising the new SST scope and tax rates.
'The guidelines and scope are now being refined to ensure a smooth implementation,' they said.
The expansion of the scope for the SST was supposed to be implemented from May 1.
However, there have been calls from the Federation of Malaysian Manufacturers (FMM), among others, for the expanded SST to be put on hold in view of the US's tariffs on Malaysian imports.
While Donald Trump's administration has postponed the tariffs imposed on nations, including Malaysia's 24% rate, Washington has maintained the 10% blanket duty on almost all US imports.
In November, finance minister II Amir Hamzah Azizan said the expansion of the SST was expected to generate RM51.7 billion in revenue in 2025.
This would represent an additional revenue of RM5 billion over the current SST collection forecast of RM46.7 billion.
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