Latest news with #RM5bil
The Star
10 hours ago
- Business
- 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.
The Star
2 days ago
- Business
- The Star
Expanded SST will add RM10bil to national coffers in 2026, says Finance Ministry
PETALING JAYA: The total collection from the Sales and Service Tax (SST) is expected to increase by RM5bil in 2025 and RM10bil in 2026 following its review and scope expansion, says the Finance Minsitry. The inflation rate is expected to be under control at 0.25 per cent after the implementation of the expanded SST which starts on July 1, 2025. – Bernama More to come
The Star
10-06-2025
- Business
- The Star
Govt targets RM5bil from SST revision
Minister of Finance II Datuk Amir Hamzah Azizan PUTRAJAYA: The government expects to raise RM5bil from the revision of the sales tax and expansion of the service tax (collectively SST) to other services effective July. Finance Minister II Datuk Seri Amir Hamzah Azizan, said the revision of the SST is driven by the need to improve the fiscal space of the federal government to improve the delivery of service to the public and lower the cost of living besides increasing the amount of cash assistance to the people. 'To ensure that the majority of the people are not affected by the SST revision, the Madani government is taking a targeted approach to ensure that basic goods and services are not taxed. 'In addition, various facilities are also provided to reduce the impact on micro, small and medium enterprises,' he told a media briefing here yesterday. Hence, Putrajaya has maintained zero sales tax on essential goods like rice, chicken meat, and vegetables but introduced a 5% tax on goods such as king crab, salmon, truffle and essential oil as well as raise the sales tax to 10% for products such as racing bicycles, antique hand paintings and tungsten scrap residues from 5%. It has broadened the tax base and imposed a 8% tax on services such as rental and leasing, financial and beauty services, and a 6% tax on construction, healthcare and education services. The Chartered Tax Institute of Malaysia (CTIM) said the move to revise the SST was timely and a strategic use of indirect taxation to enhance government revenue without resorting to further direct taxes or reintroducing the goods and services tax at this juncture. 'As Malaysia's service-based economy continues to grow, CTIM recognises the government's effort to broaden the tax base by incorporating more sectors into the SST regime. 'This aligns with global trends and reflects a pragmatic approach to fiscal sustainability,' it noted in a statement. CTIM added to ensure a smooth transition, it urged the government to establish dedicated support channels – such as hotlines, emails, or live chats – manned by knowledgeable personnel to provide timely responses and minimise compliance risks. The collection of the SST from registered businesses will begin next month and for companies that now come under the tax space collection, it is expected to begin in September after such businesses have registered with the Customs department. This extension of the SST is accompanied by selected exemptions to avoid double taxation as well as ensure that certain essential services for Malaysian citizens are not taxed, Amir Hamzah added. Details are available on the Royal Malaysian Custom's department's website. Putrajaya collected about RM45bil in SST in 2024. According to the Finance Ministry's official first quarter 2025 Economic Report, the federal government's revenue for the quarter amounted to RM72.1bil, driven in part by a surge in SST receipts which totalled RM11.1bil. The reimplementation of SST in September 2018 saw the government collect RM5.4bil for the period. Annual SST collection in 2019 amounted to RM27.6bil, RM25.2bil in 2020, RM25.5bil in 2021, RM31.3bil in 2022 and RM35.4bil in 2023.
The Star
29-05-2025
- Business
- The Star
Ekuinas committed direct investments up to RM5bil for FY24
KUALA LUMPUR: Ekuiti Nasional Bhd's (Ekuinas) cumulative committed direct investments rose to RM4.9bil last year (FY24) from RM4.5bil a year ago, with total economic capital deployed at RM5.6bil. In a statement yesterday, the government-linked private equity company said funds under management increased by 19% to RM5bil. Its operating expenditure-to-funds under management ratio remained steady at 1.1%. The private-equity company said the gross internal rate of return (GIRR) for the Ekuinas Direct Tranche IV Fund was 38.9%, while Tranche II Fund was 12%. 'Ekuinas Direct Tranche III Fund showed modest improvement with a GIRR of 1.6%. Meanwhile, our outsourced programme reported GIRRs of 3.8% for Tranche I and minus 6.9% for Tranche II,' Ekuinas said. The earnings before interest, tax, depreciation and amortisation (Ebitda) of portfolio companies under Ekuinas Direct Funds grew by 3.3%, rebounding from a 7% contraction in 2023. Unitar Education group recorded Ebitda of 77.2% while Medispec (M) Sdn Bhd and Exabytes Capital Group achieved 48.7% and 30.9% Ebitda growth, respectively. — Bernama
The Star
26-05-2025
- Business
- The Star
Warisan calls for White Paper, audit on Sabah GLCs
KOTA KINABALU: Warisan is urging the Sabah government to table a Cabinet-level White Paper to address the underperformance of several government-linked companies (GLCs) and state agencies in Sabah. Warisan secretary-general Datuk Loretto Padua Jr the White Paper would allow concerned Sabahans to know what led to the underperformance and what the state government plans to do about it. He added that transparency is needed, saying: "The best watchdogs in this state are the people of Sabah themselves, not those appointed by the Chief Minister from the ruling party or coalition." "Prudent spending must be emphasised and all unnecessary overseas trips must be stopped immediately," he said in a statement on Monday (May 26) adding that if Warisan was given the mandate to govern, they would table a White Paper in the State Assembly within six months. He said the White Paper would address matters such as the RM5bil in non-performing loans at Sabah Development Bank and its use of "creative accounting"; the cancellation of Sabah Forest Industries concession land and its reallocation to peninsula-based companies; the water and electricity supply crises including exorbitant charges by private tanker contractors; and the RM1.2bil bailout of Sabah International Petroleum via a RM900mil Sukuk Wakalah issuance by SMJ Energy Sdn Bhd. It would also cover unresolved GLC-related issues previously raised by Warisan and other Opposition parties, which Loretto said were never addressed by GRS-Pakatan Harapan in the state assembly. He also said Warisan would also push for detailed investigations by the National Audit Committee into all problematic state agencies and GLCs. "I believe that a Cabinet White Paper and National Audit Committee investigations are the first steps towards improving the performance of GLCs and state agencies," he said.
