By Usha Muthusamy
KUALA LUMPUR, 9 June 2025: Malaysians will see new Sales and Service Tax (SST) rates and an expanded tax scope starting 1 July 2025, as part of the government’s move to improve the country’s financial health. The announcement was made by Finance Ministry II Minister Datuk Seri Amir Hamzah Azizan, highlighting this as a step toward a stronger, more sustainable economy.
Experts from PwC and KPMG Malaysia have backed the change, saying it aligns with Malaysia’s Budget 2025 plans. PwC’s Tax Leader Steve Chia urged the public to see the SST updates as part of a bigger picture, aimed at achieving medium-term financial goals and providing steady income for public needs.
The updated SST targets non-essential goods and business-to-business (B2B) services, making sure that everyday consumers aren’t overly burdened. KPMG’s Soh Lian Seng noted that this could temporarily drive up shopping as people rush to buy before the new tax kicks in, similar to what happened during the GST rollout in 2015. However, he expects spending to settle and only a mild impact on inflation overall.
These tax adjustments show the government’s commitment to fairer tax collection, efficient spending, and long-term fiscal stability, ensuring Malaysia stays on a healthy economic path.
Read more at https://www.bernamabiz.com/news.php?id=2432343
