PUTRAJAYA: The Sales and Services Tax (SST) that takes effect on September 1, 2018 will cover 5,612 categories of goods for 10% Sales Tax and 793 items for 5% Sales Tax.
Minister of Finance, Lim Guan Eng said, under the Goods and Sales Tax (GST) implementation 11,197 items had been taxed 6%. With SST consumers’ burden will be lesser as the collection from SST is RM21 billion a year compared to RM44 billion from GST for the year 2018.
“Up to date, 79,966 businesses have been registered with the Royal Malaysian Customs Department (JKDM) under the SST through the automatic transfer from GST (MyGST) to SST (MySST) effective from August 16.
“From those registered, 32,577 businesses are registered under Sales Tax Act (ACJ 2018) and 44,874 are registered under Services Tax Act (ACP 2018),” Guan Eng said in a press statement here today.
Meanwhile starting on August 26, a total of 2,515 new applications for SST registration were received by JKDM. All new applications will be processed twice a day at 8am and 8pm.
The Finance Ministry’s statement added, 185 new registrations under Detail, Schedule C Sales Tax Order (Persons Exempted from Tax Payments) 2018 and Detail 2, Schedule C Sales Tax Order (Persons Exempted from Tax Payments) 2018 have been processed following auto-approved.
The statement said, any company or business that wishes to be registered can browse https://mysst.customs.gov.my or contact 1-300-888-500 or go to any nearest customs office for further details.
In another development, Customs Department Deputy Director General Datuk Seri Subromaniam Tholasy said, private hospitals and domestic flights except for rural air services will not be taxed.
In a briefing session with the media on Thursday, Subromaniam also revealed that electrical appliances like washing machines and radios, shampoo and shower gel, processed foods like fruit juice and butter will still be taxed.
He also told that the number of service tax applicable businesses is 43.49% compared to 65.85% of services that were GST applicable.
“There were 472,000 businesses registered with GST but we expect only 80,000 to register with SST,” he said.
Subromaniam also said that 85% of businesses will be out of the tax net and this would help reduce prices and will benefit the small manufacturers, cottage industries and small retailers. –Malaysia World News
