Indirect Tax Alert
Stay updated
Issue No. 4/2025 | 26 March 2025
Excise Duties (Exemption) (Amendment) Order 2025 – Sugar tax on premix preparations
The Excise Duties (Exemption) (Amendment) Order 2025 was issued on 24 March 2025 and will be effective from 2 April 2025.
Amendments have been made to Item 41, Part I of Schedule of Excise Duties (Exemption) Order 2017. Summary of the amendments are as follows:
- The descriptions under the following subitems:
- subitem (c), column (3), – Formulated milk powder and formula dietary food for children as specified in the Food Regulations 1985 for headings 18.06, 19.01 and 21.06
- subitem (d), column (3) – Follow-up formula for an infant and children as specified in the Food Regulations 1985 for headings 18.06, 19.01 and 21.06;
have been amended to include a reference to any age group that is specified in the Food Regulations 1985 as the “recommended age group”.
- The reference to “plain milk powder” under subitem (e), column (3) has been amended to refer to “milk powder”, containing 100% lactose with no added sugar of subheading 1901.90.39 00.
- Clarification is provided that the conditions pertaining to the total sugar content and lab analysis report requirements specified in subitems (b), (c) and (d) in column (4) will only apply to the goods exempted in the following subitems in column (3):
- subitem (a) – Premix preparations
- subitem (e) – Milk powder
- subitem (f) – Flavoured milk powder
If your business is affected by the above amendments or if you have any questions on the above matters, please do not hesitate to contact us and we would be happy to assist you.
Contact us
© 2025 PwC. All rights reserved. "PricewaterhouseCoopers" and/or "PwC" refers to the individual members of the PricewaterhouseCoopers organisation in Malaysia, each of which is a separate and independent legal entity. Please see www.pwc.com/structure for further details. Read about our commitment to your privacy here.