- Malaysia plans to revise and expand its Sales and Service Tax (SST) framework to improve fiscal consolidation without new taxes.
- The expansion aims to increase tax collection by targeting the growing services sector while protecting basic goods and services.
- The revised SST will take effect on 1 July 2025, with an expanded service tax scope and tiered sales tax rates.
- Sectors such as rental, leasing, construction, private healthcare, education, financial services, and beauty will be included.
- The changes are expected to align with evolving consumption patterns, especially in urban areas.
- There may be slight upward pressure on consumer prices, but overall inflationary effects are expected to be contained.
- The government will need to monitor prices and address any unreasonable increases by businesses.
- Implementation is crucial to limit the burden on consumers.
Source: thevibes.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.
