The Malaysian government plans to further expand the Sales and Services Tax (SST) on May 1 next year, which aims to increase government revenue that is expected to reach RM5 billion by 2025.
This increase is part of the government's efforts to meet its financial needs without burdening the low-income group.
The expansion will make SST's projected revenue increase to RM51.7 billion from the initial estimate of RM46.7 billion.
According to Finance Minister II Datuk Seri Amir Hamzah, the sales tax will be focused on non-essential goods, especially premium imported products such as salmon and avocado.
Meanwhile, the scope of service tax will also expand, covering certain business services that charge fees.
However, to protect individuals and households, this expanded service tax will mainly apply to business-to-business (B2B) services, such as financial services offered to companies.
The government is consulting with relevant stakeholders to ensure that this tax expansion is fair and orderly.
Essential food items will remain exempt, and part of the extra revenue will be used to improve cash assistance for people.
