15 Items Exempted from Sales and Services Tax (SST)
With the upcoming Sales and Services Tax (SST) fast approaching, the question on everyone’s mind is going to be which items are going to be SST exempted items? Are some of your regular favorites or necessities going to be affected by this upcoming change? Let’s find out.
Replacing the GST
The Goods and Services Tax (GST) was formerly the tax that was active in Malaysia. With the change of government, Malaysians were delighted with the news that the GST was going to be no more. Instead, the SST tax (which was the active tax before the GST was implemented) was about to make its re-entry on 1 September 2018.
Questions are on the minds of Malaysians, as many are unsure what to expect with this new tax system and what items are going to be affected. Which items are going to be SST exempted items, and which items will they now be expected to pay SST for. More importantly, is the SST going to be an even bigger financial burden on the people than the GST was?
Malaysia’s Finance Minister, Lim Guan Eng, has given the assurance that the people will not be financially burden with the SST the way that they were with the GST. This is because the percentage of tax of the SST is going to be much lower compared to what the GST was projected to collect. The Malaysian government has also carefully and comprehensively reviewed the SST before launching it, so that the lower income group will feel its impact much less.
A List of SST Exempted Items
As the SST gears up to make its re-entry into the Malaysian scene, here is a list of 15 items which Malaysians will be glad to know are safe and SST exempted:
- Dairy products (including milk, cheese, yogurt and more)
- Chili Sauce and Tomato Sauce
- Ambulance Services
- Construction Materials (including bricks, cement, sand and more)
- Medical consultation
- All motorcycles below 250cc
In addition to the list above, the Finance Minister had more good news to share with farmers and fishermen in Malaysia, because fishing boats, fertilizers and tractors will be considered an SST exempted item too. With better light shed on what items are going to be SST exempted items, Malaysians can breathe easier knowing that at least these 15 products and services are safe.