The Sales and Services Tax (SST) expansion scheduled for May 2025 has been postponed to a later date and will be announced later, according to a statement from a spokesperson from the Ministry of Finance.
The postponement came after the ministry held a series of consultations with various industries to refine the guidelines and scope of implementation.
The amended SST is expected to include premium products such as salmon and avocado, while basic food items remain exempt as promised in Budget 2025.
While this postponement provides some relief to consumers, the question remains: will this delay ultimately pave the way for higher tax rates on imported goods, local goods, and services to ensure the government achieves its target of additional revenue of RM5 billion?
The postponement, which seems to provide room for deeper modifications, also raises questions about the government’s preparedness to implement this major change.
The people are now eagerly awaiting whether the next announcement regarding SST will bring relief or a new hidden burden. Whatever the outcome, the impact will surely be felt by all.
