THE Ministry of Finance (MOF) has moved to allay fears of a potential increase in sugar prices following a revision to Malaysia’s Sales and Services Tax (SST), affirming that refined sugar will remain exempt from the new tax structure taking effect on 1 July 2025.
In response to concerns raised by MSM Malaysia Holdings Berhad, the ministry clarified that the updated SST will not apply to refined or white sugar, a staple commodity in Malaysian households.
“The MADANI government has taken a targeted approach, ensuring that essential goods — including sugar, salt, chicken, eggs, meat, fish, vegetables, cooking oil and rice — are not subject to sales tax,” the ministry said. “This policy is designed to shield the public from any undue impact arising from the SST review.”
Raw sugar, which is processed into refined sugar, will attract a 5% sales tax. However, the ministry emphasised that companies such as MSM are eligible to apply for tax exemption on raw materials and production inputs.
“There is therefore no justification for any increase in the price of refined sugar,” the ministry added. “Refiners like MSM also continue to receive monthly government incentives to help stabilise prices and maintain supply.”
According to the ministry, sugar refiners may apply for exemptions via the Royal Malaysian Customs Department under Item 1, Column (2), Schedule B of the Sales Tax (Persons Exempted from Payment of Tax) Order. - June 20, 2025
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