Indirect Tax Alert
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Issue No. 8/2025 | 29 April 2025
Deferment of Expansion of SST Scope
It was recently reported in the news that the expansion of scope for sales tax and service tax (“SST”) originally scheduled to take place on 1 May 2025 will be deferred to a later date.
It was reported that, according to a spokesperson from the Ministry of Finance (MOF), the deferment is due to the time needed to refine the guidelines and scope of the SST expansion. It is also possible that the deferment may be due to the announcement of the so-called 24% “reciprocal” tariff by the United States (US) on Malaysian goods at the beginning of this month. Even though the US tariffs have been suspended for 90 days, many business and trade groups have urged the government to defer the implementation of the expansion of SST scope on the worries that businesses in Malaysia may face more economic challenges in the months to come.
It was also reported that the Director General of Customs stated that the relevant legislation on the expansion of SST scope will be gazetted on 1 June 2025.
Notwithstanding the above, we will update you on the new implementation date once it is announced by the authorities.
Curious about how SST expansion could impact your business? Don’t hesitate to reach out to us, we are here to assist you navigate the changes!
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