The government is imposing a revision of Sales Tax rates and expansion of Service Tax’s scope starting Tuesday (July 1).
According to a report by Kosmo, Minister of Finance II, Senator Datuk Seri Amir Hamzah Azizan, shared that the move is aimed at strengthening the country’s fiscal position by increasing revenue and broadening the tax base to improve the quality of the social safety net without burdening the people.
“The sales tax review involves certain selected items which are increased to 5%, such as king crab, salmon, cod, truffles, imported fruits, essential oils, silk fabrics and industrial machinery. Some premium selected items have been increased to 10%, including racing bikes and antique paintings,” he said.
Service tax, on the other hand, will be extended to the latest services such as rental or leasing, construction, finance, private healthcare, education and beauty.
An 8% tax will also be imposed on fee-based or commission-based financial services, and a 6% tax on private healthcare services that reach a threshold value of RM1.5 million.
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“For education, a tax of 6% is imposed on private preschools, primary schools and secondary schools with tuition fees exceeding RM60,000 per year, while a higher education tax is only imposed on non-citizen students,”
“An 8% tax is imposed on the beauty sector, including facials and hairdressing, with a service value reaching RM500,000 within a 12-month period,” he added.
Selected exemptions
There will also be selected exemptions to avoid double taxation, as well as to ensure that certain essential services for Malaysian citizens are not taxed.
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This post first appeared on WORLD OF BUZZ.
