Latest news with #Treasury
Economic Times
an hour ago
- Business
- Economic Times
Rupee rises 13 paise to 86.60 against US dollar in early trade
Rupee rose 13 paise to 86.60 against the US dollar in early trade on Friday over a decline in global crude oil prices and a weakening greenback. ADVERTISEMENT The rupee had lost 30 paise to close at an over two-month low of 86.73 against the US dollar on Thursday, logging a combined loss of 69 paise during the past three sessions. At the interbank foreign exchange, the rupee opened at 86.65 against the US dollar before rising to 86.60, up 13 paise from its previous close. "The uncertainty of Iran-Israel war remains, and US President Donald Trump has only postponed the US entry by 2 weeks... the rupee is expected to move between 86.35/95. Exporters are getting a good chance to sell dollars as when the fighting ends we may see the rupee back to 85.50/75 levels, which could happen in July," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. "Importers need to wait for hedging, while exporters can keep selling at 86.85/90 levels. FPIs have been small buyers of equity in the last three days, and the selling has mostly happened in mid-cap and small caps as indices have not fallen much despite the war in the Middle East," he said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.31 per cent lower at 98.59. ADVERTISEMENT In the domestic equity market, the 30-share BSE Sensex climbed 289.43 points to 81,651.30 while Nifty was up 88.25 points to 24,881.50. Brent crude, the global oil benchmark, declined 2.46 per cent to USD 76.91 per barrel in futures trade. ADVERTISEMENT "As the White House release said that Trump will decide in two weeks whether to attack Iran or not, there was some relief in various asset classes with Brent oil down to USD 77.16 per barrel with prices having jumped by almost 3 per cent overnight," Bhansali said. Foreign institutional investors (FIIs) purchased equities worth Rs 934.62 crore on a net basis on Thursday, according to exchange data. (You can now subscribe to our ETMarkets WhatsApp channel)
The Hindu
2 hours ago
- Business
- The Hindu
Rupee rises 13 paise to 86.60 against U.S. dollar in early trade
Rupee rose 13 paise to 86.60 against the U.S. dollar in early trade on Friday (June 20, 2025) over a decline in global crude oil prices and a weakening greenback. The rupee had lost 30 paise to close at an over two-month low of 86.73 against the U.S. dollar on Thursday, logging a combined loss of 69 paise during the past three sessions. At the interbank foreign exchange, the rupee opened at 86.65 against the US dollar before rising to 86.60, up 13 paise from its previous close. "The uncertainty of Iran-Israel war remains, and US President Donald Trump has only postponed the US entry by 2 weeks... the rupee is expected to move between 86.35/95. Exporters are getting a good chance to sell dollars as when the fighting ends we may see the rupee back to 85.50/75 levels, which could happen in July," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. "Importers need to wait for hedging, while exporters can keep selling at 86.85/90 levels. FPIs have been small buyers of equity in the last three days, and the selling has mostly happened in mid-cap and small caps as indices have not fallen much despite the war in the Middle East," he said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.31 per cent lower at 98.59. In the domestic equity market, the 30-share BSE Sensex climbed 289.43 points to 81,651.30 while Nifty was up 88.25 points to 24,881.50. Brent crude, the global oil benchmark, declined 2.46 per cent to USD 76.91 per barrel in futures trade. "As the White House release said that Trump will decide in two weeks whether to attack Iran or not, there was some relief in various asset classes with Brent oil down to USD 77.16 per barrel with prices having jumped by almost 3 per cent overnight," Bhansali said. Foreign institutional investors (FIIs) purchased equities worth Rs 934.62 crore on a net basis on Thursday, according to exchange data.
Sinar Daily
2 hours ago
- Business
- Sinar Daily
Expanded SST not new tax, just smarter one, says Treasury sec-gen
SHAH ALAM - The expanded sales and service tax (SST) set to take effect from July 1, 2025 is not a new tax imposed on everyday goods despite the common misconception, but a carefully considered extension of the existing tax framework. Secretary General of Treasury Datuk Johan Mahmood Merican said SST was aimed at improving national fiscal stability without overburdening the public. Clarifying public confusion over the SST expansion, Johan stressed that only about 3,332 new items were being added to the list of taxable goods and services. This represented just 20 per cent more than the existing 6,297 taxable items. "The expansion is being misunderstood as a new tax. "But the reality is many of these items have been subject to SST all along — just not visible to consumers because the tax was absorbed at the manufacturer or supplier level," he said. Chief Secretary of Treasury Datuk Johan Mahmood Merican visiting the Customs Call Centre under the Corporate Planning Division at the Royal Malaysian Customs Department, Kuala Lumpur on Wednesday. He added that the confusion was exacerbated by viral claims on social media suggesting that bizarre items such as seawater, human hair and bones were being taxed. "This tax domain is technical. Yes, these terms exist in the gazette, but they refer to industrial inputs, not items meant for daily consumption," he said. In response to claims that seawater is being taxed, Johan clarified that the items listed in the Customs gazette pertained to pharmaceutical-grade seawater, not ordinary seawater from local beaches. Similarly, human hair was only taxed if it was imported for wig-making or industrial use, not from local barbershops. "Table salt that Malaysians use every day remains tax-free. Only certain premium or industrial salts are taxed. "The same applies to milk, sugar, bread and other essentials — all remain zero-rated," he said. He added that while optional dairy products like yoghurt and butter were taxed at five per cent. This, he said has been in place under the previous SST framework. He said these were not new additions adding that consumers may just now be realising it due to the public attention. Chief Secretary of Treasury Datuk Johan Mahmood Merican during his visit to the Customs Call Centre under the Corporate Planning Division at the Royal Malaysian Customs Department, Kuala Lumpur on Wednesday. While some economists and business groups advocate a return to the goods and services tax (GST) due to its comprehensiveness and higher potential revenue, Johan said SST was a more progressive and balanced approach at this time. "If we reinstated GST, it would generate over RM20 billion annually. "But SST expansion is projected to bring in around RM10 billion for a full year — less than half of GST," he said. He added that GST, by design, passed the full tax burden to the end-user consumer, making it favourable for businesses but more costly for everyday Malaysians. As such, he said the government should widen the revenue base without disproportionately impacting the people or the economy instead. Items newly taxed under the SST included imported fruits and premium seafood such as salmon, cod, lobster and king crab, which will now carry a five per cent tax. These goods, by default, were considered non-essential and as seen in the country's current economic landscape, alternatives existed. "For instance, local fruits remain zero-rated and there's an opportunity here to stimulate local production. "In cases where local supply is insufficient, such as coconuts, imported versions are still tax-free," he said. He dismissed rumours that common seafood like mackerel or tuna would be taxed, further affirming that basic seafood items — prawns, squid, mackerel — all remained zero-rated. Beyond the horizon, Johan assured that the SST expansion will not significantly affect inflation, with the impact estimated at around 0.25 per cent — in line with government projections. "These figures are based on detailed modelling. The idea is to raise essential revenue while ensuring affordability," he said. The additional revenue will in turn support critical government programmes, including Sumbangan Asas Rahmah (SARA) which provided RM100 monthly to over five million Malaysians. Despite an overall positive outlook thus far, one area of concern has been the inclusion of rental and logistics services under SST, which some feared could increase consumer prices. To clear any lingering doubts, Johan said rental services were only taxed for businesses earning over RM500,000 annually, thereby exempting small traders. Chief Secretary of Treasury Datuk Johan Mahmood Merican during an interview with Sinar. Business-to-business exemptions were in place to avoid double taxation, such as between shopping malls and anchor tenants. "For example, if a mall rents to a department store, that transaction is taxed. But smaller kiosks operating under the department store will not face an additional tax," he said. Summing up the rationale behind the expanded SST, Johan said the government has adopted a "targeted, progressive" tax strategy that supported national fiscal policy while protecting lower-income households. "The idea is not to burden the people but to empower the government to fund better public services. "We must be realistic about our country's fiscal needs. But at the same time, we are ensuring basic needs are protected and that choices exist for consumers to avoid any additional cost," he said.
New Straits Times
5 hours ago
- Business
- New Straits Times
Bursa Malaysia opens marginally lower in absence of catalyst
KUALA LUMPUR: Bursa Malaysia opened marginally lower in the absence of new catalyst, coupled with the closure of Wall Street on June 19, an analyst said. At 9.06am, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 0.79 of-a-point to 1,500.65 from Thursday's close of 1,501.44. The benchmark index opened 0.50 of-a-point lower at 1,500.94. The broader market was negative, with 118 decliners outnumbering 68 gainers, 192 counters unchanged, while 2,046 were untraded and 25 suspended. Turnover stood at 56.66 million shares worth RM24.34 million. Rakuten Trade Sdn Bhd's equity research vice-president Thong Pak Leng said Wall Street was closed for a holiday yesterday as traders were pondering over the involvement of the United States (US) in the Middle East conflict. The US 10-year Treasury yield eased to 4.39 per cent. In Hong Kong, the Hang Seng Index (HSI) declined sharply on inflationary concerns induced by prevailing higher tariffs coupled with the conflict in the Middle East. This also disrupts global crude oil supply and could be inflationary as well. Back home, the FBM KLCI on Thursday closed just above the 1,500 level, likely due to continued foreign selling. "Nonetheless, we would advocate investors to accumulate blue chips if and when the index dips below the 1,500 mark at around the 1,480 threshold," Thong told Bernama. Among heavyweights, Maybank gained 2.0 sen to RM9.62, Tenaga Nasional fell 4.0 sen to RM14.18, CIMB was 1.0 sen higher at RM6.59, while Public Bank, IHH Healthsare and CelcomDigi remained unchanged at RM4.19, RM6.85 and RM3.82 respectively. Among the most active stocks, Velesto Energy was flat at 18.5 sen, Magma eased half-a-sen to 46 sen, Pavilion REIT was down 6.0 sen to RM1.48, Aizo dipped half-a-sen to 8.0 sen and Dataprep added half-a-sen to 12 sen. On the index board, the FBM Emas Index lost 7.90 points to 11,215.84, the FBMT 100 Index shed 7.68 points to 10,996.32, and the FBM Emas Shariah Index declined 15.09 points to 11,217.80. The FBM 70 Index lost 18.82 points to 16,074.63 and the FBM ACE Index dropped 24.59 points to 4,390.46. By sector, the Plantation Index narrowed 4.34 points to 7,214.27, while the Energy Index declined by 0.71 of-a-point to 738.94. The Financial Services Index rose 19.36 points to 17,349.51, but the Industrial Products and Services Index slid 0.20 of-a-point to 148.04.
Malaysiakini
6 hours ago
- Business
- Malaysiakini
Treasury sec-gen urges builders to avoid cutting corners as SST looms
Treasury secretary-general Johan Mahmood Merican has strongly urged construction industry players to maintain professionalism and integrity, warning against using the expanded sales and service tax (SST) to justify compromised work quality. His remarks follow reported concerns from industry associations that the revised tax regime will drive contractors towards cheaper alternatives.
