Government Explains Sales-Tax Shift on Raw Sugar, Grants Exemptions to Refiners

The Ministry of Finance (MOF) clarified that refined sugar remains exempt from the revised Sales and Service Tax (SST) effective 1 July 2025. This comes after MSM Malaysia Holdings Berhad raised concerns about raw sugar taxation. MOF stressed that essential items like sugar, rice, chicken, and cooking oil are not taxed to protect consumers. While raw sugar is subject to 5% tax, manufacturers can apply for exemptions through the Royal Malaysian Customs Department. MOF emphasized there is no reason for refined sugar prices to increase, as producers still receive monthly government incentives.

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