Malaysia

Govt open to reviewing SST expansion policy

The government remains open to revisiting the expansion of the Sales and Services Tax (SST) should any gaps or public concerns emerge following its implementation, set to commence on 1 July

Updated 1 year ago · Published on 17 Jun 2025 5:57PM

Govt open to reviewing SST expansion policy
The main aim of this SST expansion is to strengthen the country’s tax base, which is currently among the lowest in the region - June 17, 2025

THE government is prepared to reassess the expanded implementation of the Sales and Services Tax (SST) if issues arise that impact the public, according to the Political Secretary to the Finance Minister, Muhammad Kamil Abdul Munim.

Despite the planned commencement of the broadened SST scope on 1 July, Muhammad Kamil stressed that the government welcomes feedback from both industry players and the general public.

“I do not believe the government will close the door to revisiting this policy if there are particular segments or sectors that warrant reconsideration. This is not divine law, so if improvements are necessary, then naturally, it should be reviewed,” he told reporters.

“The main aim of this SST expansion is to strengthen the country’s tax base, which is currently among the lowest in the region, without burdening the majority of the people,” he added.

He made the remarks after visiting Sergeant Mazlan Mat of the Federal Reserve Unit (FRU), who was involved in a tragic accident involving an FRU truck in Taman Desa Tambun on Tuesday. During the visit, Muhammad Kamil also handed over a contribution from Prime Minister and Tambun MP, Datuk Seri Anwar Ibrahim, to the injured officer.

Clarifying public concerns, Muhammad Kamil assured that essential goods remain exempt from the expanded tax list, with SST only applied to specified items as gazetted by the government.

Responding to apprehensions regarding taxation on fruits, he stated, “SST is only imposed on imported fruits, not local produce.”

“There have been complaints from industry players about the insufficient supply of local fruits to meet market demand. This will be reviewed by the government.

“However, the fundamental policy remains not to tax locally produced goods that are unprocessed or unmanufactured,” he said.

He drew parallels with the earlier diesel subsidy rationalisation, which initially faced mixed reactions but was successfully managed post-implementation.

“Every policy will trigger some discontent in its early stages — that is normal. But in the end, the government will ensure it is calibrated to avoid burdening the majority of the people,” he said.

On a separate matter, when asked about the vacant position of Minister of Economy following Datuk Seri Rafizi Ramli’s resignation, Muhammad Kamil said the decision lies with Prime Minister Datuk Seri Anwar Ibrahim.

Nonetheless, he remarked that the successor should possess a strong background and expertise in economics. - June 17, 2025

Spotlight

Off beat

Afdlin Shauki, family trapped for five hours amid Paris unrest

Malaysia

10 former Negeri Excos file application in Federal Court to challenge revocation of appointments

Malaysia

Perlis MB Abu Bakar suspended from Bersatu for two election terms

Malaysia

Shuhaily says public support gives him strength as he faces two charges

Malaysia

Mohd Shuhaily pleads not guilty to assaulting 2 cops

Places

Penang makes National Geographic list of top 25 cities worldwide to visit

By Ian McIntyre

Malaysia

Two held after 16-year-old girl rescued in suspected sex exploitation case

Malaysia

Takiyuddin blames Bersatu for PN deregistration

Malaysia

Interpol issues Red Notice for Serba Dinamik CEO, Anwar says

You may be interested

Malaysia

Shuhaily says public support gives him strength as he faces two charges

Malaysia

Two held after 16-year-old girl rescued in suspected sex exploitation case

Malaysia

Unsubsidised petrol prices drop 30 sen as govt maintains RON95 at RM1.99

Malaysia

Former Temerloh police chief jailed eight months for receiving RM69,600 in bribes

Malaysia

Ship fuel emissions: ‘Do not overlook public health’ – experts

Malaysia

Government open to RCI into KWAP, EPF if evidence warrants probe

Malaysia

Anwar to face Dewan Rakyat questions on corporate mafia claims, FELDA probes

Malaysia

Malaysia Airlines warns green levy could push airfares higher