Scope Of SST To Expand Progressively, Implementation On May 1, 2025 - PM Anwar

KUALA LUMPUR, Oct 18 (Bernama) -- The scope of the sales and services tax (SST) will be expanded progressively and implemented on May 1, 2025, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the finance minister, said a portion of the revenue be utilised to improve cash assistance for the broader public and enhance the quality of education and health services.

“To ensure business continuity, the government will conduct engagement sessions with stakeholders and relevant industries before finalising the scope of the expansion and the tax rate to be imposed,” he said when presenting Budget 2025 in the Dewan Rakyat today.

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Anwar said the government proposed to progressively broaden the tax base by introducing a two per cent tax on dividend income exceeding RM100,000 gained by individual shareholders from the assessment year 2025.

“This initiative is implemented to ensure the income tax collected is not solely dependent on contributions from wage owners but also encompasses contributions from company owners as well as individuals with shareholdings in the millions.

Meanwhile, the government has proposed that the scope of service tax be expanded to include new services, such as business-to-business (B2B) commercial service transactions, effective May 1, 2025.

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The government also proposed increasing the sales tax rate for non-essential goods such as imported premium goods. "However, the sales tax remains unimposed on basic food items used by the people," according to the Ministry of Finance (MoF) in an appendix issued in conjunction with the presentation of Budget 2025 today.

The MoF said the proposal was an effort by the government to strengthen its fiscal position.

-- BERNAMA