Imported mandarins and dates join apples and oranges in SST exemption, beauty services too
Imported dates will no longer be subjected to SST, joining apples and oranges. — Picture by Miera Zulyana
Friday, 27 Jun 2025 3:46 PM MYT
- The government has revised its SST expansion plan to exempt imported mandarin oranges and dates, while essential goods like rice and local fish remain tax-free.
- The Service Tax registration threshold has been raised to RM1 million for selected sectors, easing compliance for small businesses.
- The proposed Service Tax on beauty and personal grooming services has been cancelled following public feedback.
PUTRAJAYA, June 27 – The government has announced today that it has revised its Sales and Service Tax (SST) expansion plan following feedback from the public and businesses.
In a statement, the Finance Ministry (MOF) said the three key amendments, which will take effect on July 1, aim to ease the financial burden on consumers and small businesses while maintaining a progressive tax structure.
Imported mandarin oranges and dates will also now be exempted from SST, after Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced yesterday that apples and oranges will not be covered by the tax.
The MOF stressed that essential goods such as rice, chicken, beef, vegetables, eggs, and local fish varieties like selar, tongkol, cencaru, and sardines would remain exempt from the Sales Tax.
To support small businesses, the threshold for Service Tax registration has been raised from RM500,000 to RM1 million for leasing, rental, and fee- or commission-based financial services.
This adjustment means only businesses with annual sales above RM1 million in these sectors will be required to register and pay Service Tax, providing relief to many Micro, Small, and Medium Enterprises (MSMEs).
The ministry also said it has decided to scrap the proposed Service Tax expansion on beauty services, including manicure and pedicure treatments, facials, barber services, and hairdressing.
The MOF urged the public to refer to official communications for accurate information and not to spread misinformation about the SST revisions.
Previously, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said the government was open to reviewing the implementation of the revised and expanded SST on several selected imported goods, including fruits such as apples and mandarin oranges.
On June 9, the government announced a targeted SST review set to take effect from July 1, 2025.
The sales tax rate will remain unchanged for essential goods, while a five or 10 per cent rate will be applied to non-essential or discretionary goods.
The scope of service tax has also been expanded to cover six new categories: rental or leasing, construction, finance, private healthcare, education, and beauty.
In a statement, the Finance Ministry (MOF) said the three key amendments, which will take effect on July 1, aim to ease the financial burden on consumers and small businesses while maintaining a progressive tax structure.
Imported mandarin oranges and dates will also now be exempted from SST, after Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced yesterday that apples and oranges will not be covered by the tax.
The MOF stressed that essential goods such as rice, chicken, beef, vegetables, eggs, and local fish varieties like selar, tongkol, cencaru, and sardines would remain exempt from the Sales Tax.
To support small businesses, the threshold for Service Tax registration has been raised from RM500,000 to RM1 million for leasing, rental, and fee- or commission-based financial services.
This adjustment means only businesses with annual sales above RM1 million in these sectors will be required to register and pay Service Tax, providing relief to many Micro, Small, and Medium Enterprises (MSMEs).
The ministry also said it has decided to scrap the proposed Service Tax expansion on beauty services, including manicure and pedicure treatments, facials, barber services, and hairdressing.
The MOF urged the public to refer to official communications for accurate information and not to spread misinformation about the SST revisions.
Previously, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said the government was open to reviewing the implementation of the revised and expanded SST on several selected imported goods, including fruits such as apples and mandarin oranges.
On June 9, the government announced a targeted SST review set to take effect from July 1, 2025.
The sales tax rate will remain unchanged for essential goods, while a five or 10 per cent rate will be applied to non-essential or discretionary goods.
The scope of service tax has also been expanded to cover six new categories: rental or leasing, construction, finance, private healthcare, education, and beauty.
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