Finance Ministry Confirms Expanded SST Rollout on 1 July 2025

PETALING JAYA – The revised Sales and Service Tax (SST), announced in Budget 2025, takes effect July 1, 2025. Essential goods like rice, vegetables, and cooking oil remain tax-exempt, while luxury items like caviar and alcohol stay at 10%. New items such as king crab and silk will now incur 5% tax. Service tax expands to cover rental, construction, finance, private healthcare (for non-Malaysians), private education (above RM60,000/year), and beauty services, with rates between 6% and 8%. Exemptions apply for low-income businesses, Malaysians, and public services. The reforms aim to boost fiscal resilience without burdening the public.

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