Starting today (Mar 1), the new sales and service tax (SST) rate of 8% will officially come into effect, which is a 2% percent increase from its previous rate of 6%.
As such, Malaysians will be feeling the pinch even more when it comes to their expenditures or paying for their utilities.
What will be affected by the 8% SST?
Given the vast field of products and services that may be taxable under the new SST rate, we’ve come up with a list outlining which will and will not be affected by it.
For starters, let’s begin with those that WILL be hit by the 8% SST rate:
– Karaokes
– Brokerage and underwriting services for non-financial services (e.g. ship/aircraft brokerage, commodities and real estate)
– Maintenance or repair services
– Casinos
– Private clubs
If you’re an avid online shopper, be prepared to pay more as major shopping platforms like Shopee and Taobao have already unveiled new charges while Google has announced it will follow suit.
Industries/services that remain at 6%
If seeing the hike in prices has made you giddy, we have some good news for you. Not all industries will be affected by the new SST rate, as stated in the list below:
– Food or beverage preparation services
– Telecommunication services (phone bills and Internet bills)
– Vehicle parking space provision services
– Logistics services (e.g. freight, customs agent, express delivery service)
The Ministry of Finance (MOF) has also provided with a comprehensive table that breaks down the scope of the new tax, which you can view here:
In light of the new tax, MOF has confirmed that consumers who spend more than RM220 a month in their electricity bill will be subjected to the 8% SST tax:
