Before the people could take their high blood pressure medication after the announcement of the SST on services was made, the government is now launching another tax attack — this time bigger, quieter, and more comprehensive.
Starting July 2025, Malaysians will start paying more for imported fruits, non-palm-based cooking oils and rental services that will be subject to a 5% Sales Tax, according to the latest announcement from the Ministry of Finance.
Tropical fruits such as bananas, pineapples and others imported from abroad will be subject to the tax, but the government insists that fruits grown in the country will not be exempted from this tax.
Food items, especially palm-based cooking oils, will continue to be exempt from SST, while non-palm-based oils such as sunflower oil will be subject to a 5% sales tax.
For the service sector, rental services will also be subject to tax.
Companies or individuals offering rental services and recording revenue exceeding RM500,000 in a 12-month period are required to register for SST by August 2025, and begin charging tax on customers starting September 1, 2025.
However, the ministry announced that the period until December 2025 will be given as a grace period where no penalties will be imposed, as long as the company shows efforts to comply with the set tax guidelines.
Overall, the expansion of the categories of goods and services subject to SST reflects the government's move to expand the scope of the tax comprehensively, and is expected to have a direct impact on consumers' daily spending.
SST, which was previously associated with hotels and restaurants, has now begun to seep into the refrigerators, kitchens, and roofs of people's homes. The more daily needs are involved, the less room for people to 'escape' from paying taxes.
The question now is, how much longer will consumers have to 'bear' before this SST really touches every inch of daily life?
Until when will the prices of goods and services increase for the sake of this "transparency of the tax system"?
