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Malaysia’s revised SST from July 2025 introduces 5% and 10% sales tax rates on non-essential and luxury goods, while essential items remain zero-rated to minimize impact on basic needs.
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Service tax expands to cover leasing, construction, financial, private healthcare, education, and beauty services, with rates ranging from 6% to 8%, supporting broader revenue generation.
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Penalties for non-compliance are deferred until end-2025; reforms aim to raise RM5 billion extra in 2025 to fund public services and direct cash assistance.
Source: innovatetax.com
