THE Ministry of Finance (MOF) has announced that new registration applications for the expanded scope of the Service Tax and revised Sales Tax rates—taking effect from 1 July 2025—can be submitted starting 1 August 2025.
In a post shared on its official X platform, the ministry added that existing registered entities may submit requests to include new services under the broadened service tax scope or update tariff codes under the revised sales tax structure beginning 24 June 2025.
The move follows the government’s 9 June announcement confirming a targeted review of the Sales Tax rate and the expansion of the Service Tax scope, both of which will come into force in July.
The ministry clarified that tax rates on essential goods remain unchanged, while select items will be subject to either a five or 10 per cent sales tax.
The updated Service Tax regime will now include six new service categories: leasing or rental, construction, financial services, private healthcare, education, and beauty services.
Secretary General of Treasury, Ministry of Finance, Datuk Johan Mahmood Merican previously stated that the enhanced Sales and Service Tax (SST) framework is expected to generate an additional RM5 billion in 2025 and RM10 billion in 2026.
This increase, he said, stems from the reimplementation and expansion of the SST system, which aims to strengthen national revenue collection without burdening lower-income households. - June 22, 2025
