Latest news with #ServiceTax
The Sun
2 days ago
- Business
- The Sun
SST revision: Finance Minister II to provide further clarification
PUTRAJAYA: Finance Minister II Datuk Seri Amir Hamzah Azizan will provide further clarification and explanation regarding the implementation of the targeted Sales Tax rate revision and expansion of the Service Tax scope. MADANI Government spokesman and Communications Minister Datuk Fahmi Fadzil said he was informed that the explanation on the matter will be delivered via a press conference or an official statement. Fahmi said the government takes public feedback seriously regarding the upcoming Sales and Service Tax (SST) revision. 'As the public is aware, the revenue collected will be channeled into developments such as the construction of schools and hospitals,' he said during his weekly media conference here today. On June 9, the Finance Ministry announced that the government will implement a targeted revision of items subject to the Sales Tax and an expansion of the Service Tax scope, effective July 1, in line with the Budget 2025 announced in October 2024. The measure is aimed at strengthening the country's fiscal position by increasing revenue and broadening the tax base without adding undue burden on the majority of Malaysians. The Sales Tax rate will remain unchanged for essential goods, while a rate of either five or 10 per cent will apply to discretionary and non-essential goods. The scope of the Service Tax will be expanded to include six new services, namely rental or leasing, construction, financial services, private healthcare, education, and beauty services.
The Sun
2 days ago
- Business
- The Sun
Govt expects additional SST revenue of RM5b in 2025, RM10b in 2026 following revision
PETALING JAYA: The Sales and Service Tax (SST) collection is expected to increase by RM5 billion in 2025 and by RM10 billion in 2026 following the review and expansion of the tax scope, which will be implemented starting July 1. Treasury secretary-general Datuk Johan Mahmood Merican said the additional amount is due to the SST review aimed at broadening the national revenue base. 'The government has taken a progressive approach by expanding the tax base, with the tax burden being skewed towards those who can afford it. 'This means that when determining the scope and those who are subject to the Service Tax, as well as the Sales Tax approach, efforts have been made to ensure it is implemented in a targeted manner,' he told Bernama after a visit to the Royal Malaysian Customs Department here. Previously, Finance Minister II Amir Hamzah Azizan had projected that the improved SST would generate revenue of RM51.7 billion in 2025, up from the earlier SST collection forecast of RM46.7 billion. On June 9, the government announced a targeted revision of the Sales Tax rates as well as expansion of the scope of the Service Tax, effective July 1, 2025. The Sales Tax rate remains unchanged for essential goods, while a rate of either five or 10 per cent applies to discretionary and non-essential goods. The scope of the Service Tax will be expanded to include new services such as leasing or rental, construction, financial services, private healthcare, education, and beauty services.
The Sun
2 days ago
- Business
- The Sun
Govt expects additional SST revenue of RM5b in 2025
PETALING JAYA: The Sales and Service Tax (SST) collection is expected to increase by RM5 billion in 2025 and by RM10 billion in 2026 following the review and expansion of the tax scope, which will be implemented starting July 1. Treasury secretary-general Datuk Johan Mahmood Merican said the additional amount is due to the SST review aimed at broadening the national revenue base. 'The government has taken a progressive approach by expanding the tax base, with the tax burden being skewed towards those who can afford it. 'This means that when determining the scope and those who are subject to the Service Tax, as well as the Sales Tax approach, efforts have been made to ensure it is implemented in a targeted manner,' he told Bernama after a visit to the Royal Malaysian Customs Department here. Previously, Finance Minister II Amir Hamzah Azizan had projected that the improved SST would generate revenue of RM51.7 billion in 2025, up from the earlier SST collection forecast of RM46.7 billion. On June 9, the government announced a targeted revision of the Sales Tax rates as well as expansion of the scope of the Service Tax, effective July 1, 2025. The Sales Tax rate remains unchanged for essential goods, while a rate of either five or 10 per cent applies to discretionary and non-essential goods. The scope of the Service Tax will be expanded to include new services such as leasing or rental, construction, financial services, private healthcare, education, and beauty services.
The Sun
3 days ago
- Business
- The Sun
Government to consider public feedback in SST review
IPOH: The government will continue to consider feedback from various stakeholders in its review of the Sales and Service Tax (SST) rates and the expansion of its scope, according to political secretary to the Finance Minister Muhammad Kamil Abdul Munim. He assured the public that the expanded scope of the tax would not apply to all goods, but only to specific segments previously announced by the government. 'Not all goods are subject to the expanded SST. For example, local products that are not manufactured or do not undergo industrial processing will remain zero-rated under the SST,' he explained. 'We acknowledge there will be concerns and complaints, but in implementing any policy, if there are elements that warrant reconsideration, I don't believe the government would hesitate to review them,' he added. He made these remarks during a Ziarah MADANI visit to the home of Sergeant Mazlan Mat, 50, a member of the Federal Reserve Unit (FRU) who was involved in a fatal accident in Teluk Intan on May 13 here today. On June 9, Second Finance Minister Datuk Seri Amir Hamzah Azizan announced that the government will carry out a targeted review of the Sales Tax rate and expand the scope of the Service Tax, effective July 1, in line with the 2025 Budget announcement made last October. According to a Finance Ministry statement, the measure aims to strengthen the country's fiscal position by increasing revenue and broadening the tax base, without placing an undue burden on the general public. Muhammad Kamil noted that public concern over tax policy changes is not uncommon, citing similar reactions during the recent rollout of targeted diesel subsidy rationalisation. 'At first, many questioned the diesel subsidy policy, but eventually recognised the benefits it delivered,' he said. Meanwhile, addressing the vacancy in the Economy Minister post following Datuk Seri Rafizi Ramli's resignation, Muhammad Kamil said the decision rests solely with Prime Minister Datuk Seri Anwar Ibrahim discretion. 'We leave it to the Prime Minister's judgment and wisdom to decide who is best suited to shoulder the responsibility at this time,' he said.
The Star
3 days ago
- Business
- The Star
Govt to consider public feedback in SST review, says Finance Minister's polsec
IPOH: The government will continue to consider feedback from various stakeholders in its review of the Sales and Service Tax (SST) rates and the expansion of its scope, says Muhammad Kamil Abdul Munim. The political secretary to the Finance Minister assured the public that the expanded scope of the tax would not apply to all goods, but only to specific segments previously announced by the government. ALSO READ: Business groups urge government to defer and reduce SST hike "Not all goods are subject to the expanded SST. For example, local products that are not manufactured or do not undergo industrial processing will remain zero-rated under the SST," he explained on Tuesday (June 17). "We acknowledge there will be concerns and complaints, but in implementing any policy, if there are elements that warrant reconsideration, I don't believe the government would hesitate to review them," he added. ALSO READ: Hairdressers in the dark over expanded SST rules He made these remarks during a Ziarah Madani visit to the home of Sergeant Mazlan Mat, 50, a member of the Federal Reserve Unit (FRU) who was involved in a fatal accident in Teluk Intan on May 13 here. On June 9, Second Finance Minister Datuk Seri Amir Hamzah Azizan announced that the government will carry out a targeted review of the Sales Tax rate and expand the scope of the Service Tax, effective July 1, in line with the Budget 2025 announcement made last October. ALSO READ: Tax reforms a necessity, despite govt facing 'dilemma', says Anwar According to a Finance Ministry statement, the measure aims to strengthen the country's fiscal position by increasing revenue and broadening the tax base, without placing an undue burden on the general public. Muhammad Kamil noted that public concern over tax policy changes is not uncommon, citing similar reactions during the recent rollout of targeted diesel subsidy rationalisation. "At first, many questioned the diesel subsidy policy, but eventually recognised the benefits it delivered," he said. Meanwhile, addressing the vacancy in the Economy Minister post following Datuk Seri Rafizi Ramli's resignation, Muhammad Kamil said the decision rests solely with Prime Minister Datuk Seri Anwar Ibrahim discretion. "We leave it to the Prime Minister's judgment and wisdom to decide who is best suited to shoulder the responsibility at this time," he said. - Bernama
