PUTRAJAYA, June 28 — The government has revised several elements of the expanded Sales and Service Tax (SST) implementation after receiving public and industry feedback. Effective 1 July 2025, three key amendments include exempting selected imported fruits from sales tax, raising the registration threshold for service tax on leasing and financial services, and scrapping plans to tax beauty-related services.
Imported apples, oranges, mandarin oranges, and dates will now be exempted from sales tax, joining other essential goods like rice, chicken, eggs, and local fish varieties already excluded. The government emphasized its commitment to protecting the rakyat from rising living costs while ensuring fairness to small businesses.
In a move to ease burdens on micro, small, and medium enterprises (MSMEs), the annual sales threshold for service tax registration will be raised from RM500,000 to RM1 million for leasing and financial services. This change ensures only larger businesses will be subject to the 8% tax in these categories.
Additionally, the planned extension of service tax to beauty services such as manicures, facials, and haircuts has been dropped following public concern. The Ministry of Finance (MOF) urges the public to refer to official announcements and contact the Royal Malaysian Customs Department’s SST Call Centre for accurate information and guidance.
