- Malaysia will expand its Sales and Service Tax (SST) starting July 1, 2025.
- Sales tax will apply to more goods with a 5 percent rate for discretionary items and 10 percent for luxury goods.
- Service tax will increase from 6 percent to 8 percent and cover new categories like logistics and private education.
- The changes aim to broaden the tax base and reduce reliance on direct taxes and subsidies.
- The government expects to generate 3 to 5 billion ringgit in additional revenue annually.
- Luxury goods such as fashion, jewelry, and electronics will face a 10 percent sales tax.
- Services related to luxury retail will incur an 8 percent service tax.
- The luxury market in Malaysia is growing, driven by domestic affluence and tourist demand.
- Retail prices for luxury items will rise, impacting consumer costs.
- Businesses may adjust strategies to manage the tax impact, such as promotions or incentives.
- Malaysia’s premium retail infrastructure is expanding, with new malls and luxury brands.
Source: aseanbriefing.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
