KUALA LUMPUR, July 31 — The government is extending Sales and Services Tax (SST) exemptions to key construction projects, including residential buildings, houses of worship, recreational parks, and public toilets, in a bid to ease costs and sustain sector growth.
Deputy Works Minister Datuk Seri Ahmad Maslan said zero-rated status remains for essential materials such as cement, gravel, and sand, while subcontractors earning below RM1.5 million are not subject to SST — unlike main contractors.
To support smoother SST implementation, Ahmad announced a one-year exemption for contracts that do not permit price reviews, giving companies time to adapt and clarify SST requirements.
However, the government has no plans to raise the SST registration threshold for construction services from RM1.5 million to RM3 million, despite industry requests.
