From July 1, Malaysias Sales and Service Tax (SST) will expand its tax scope!

According to Sin Chew Daily, Second Finance Minister Datuk Seri Amir Hamzah Azizan announced that the government will expand the scope of SST from July 1, 2025, including:

Rental services: 8%

Financial services: 8%

Beauty industry: 8%

Construction: 6%

Private healthcare: 6%

Educational services: 6%

In addition, some non-essential goods will also be taxed from 5% or 10%, including:

5%: salmon, cod, king crab, imported fruits, truffles, essential oils, silk, industrial machinery, etc.

10%: High-end products such as racing bicycles and antique hand-painted works

But don't worry, the following basic necessities are still tax-free:

Chicken, beef, fish, vegetables, white rice, flour, canned food, milk, cooking oil, medicine, newspapers, books, pet food, etc.

The minister stressed that the adjustment was aimed at increasing national tax revenue and thus improving the quality of the social security system without having too much impact on people's lives.

He said the government had held meetings with the industry and listened to their opinions before the adjustment, hoping to accurately levy taxes so as not to hurt people's wallets and take care of the finances. The tax revenue will be used to strengthen infrastructure, provide aid and improve public services.

In general, basic necessities will continue to be tax-free, mainly affecting some service industries and high-end goods. The expansion of SST this time is also an attempt by the government to find a balance between "taxation" and "life burden", so that people can be mentally prepared before consumption and plan their own expenses.

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