If you’ve somehow missed the news, the Sales and Services Tax (SST) will be replacing the Goods and Services Tax (GST), which was zero-rated on June 1, 2018.
Under SST, tax rates will be at 10% for sales and 6% for services.
On August 20, five bills related to the upcoming SST were approved by members of Dewan Negara. The five bills that were passed are the Sales Tax Bill 2018, Service Tax Bill 2018, Goods and Services Tax (Repeal) Bill 2018, Customs (Amendment) Bill 2018 and Free Zones (Amendment) Bill 2018.
In a statement released in July, Finance Minister Lim Guan Eng clarified that SST is a single-stage tax that is imposed on manufacturers, not end customers.
Source: Roket Kini
During the debate of the Sales Tax Bill 2018, Lim reiterated that:
► Only 43.5% of services would be subjected to SST, compared to 65% of services with GST
► 5,443 goods are exempted from SST, compared to 545 goods under GST
With just a few more days of zero-rated GST days left, the Customs Department has uploaded a list of proposed sales tax rates for various goods.
Customs Department director-general Datuk Seri Subromaniam Tholasy said on August 28 that the finalized list of businesses and items affected by SST will be released within two days.
Customs Department director-general Datuk Seri Subromaniam Tholasy | Source: MMO
According to NST, the list should not have any significant changes and should ‘more or less’ remain the same.
Below is a rundown of how common items are expected to be affected by SST:
1. Almost all forms of meat and fish are exempted
Source: Cookie Sound
The only exceptions are camel meat, dried pork skin, freeze-dried chicken dice, frog’s legs, and rabbit meat which are taxed at 5%.
Fillet or cut fish, whether fresh, chilled, or frozen, also fall under the ‘exempted’ category.
2. Some meats might cost more in eateries
Fried chicken, burgers, nuggets, pies, sushi, and even satay! These favorites will be taxed at 5%. However, otak-otak and meatballs are safe from tax!
3. Most shellfish will be taxed at 10%
Seafood lovers might need to think twice before going hard on kerang and lala the next time you’re at the hawker centre.
4. It could be the end of RM 1 ice-cream potong
Source: Bamboo Stick Ice Cream
Under SST, potong and other forms of ice-cream will be taxed at 5%.
However, that’s not all, there’s also a 10% tax on popular toppings for ice-cream, sundaes such as chocolate chips and chocolate rice.
5. Boxed drinks will be taxed at 10%
Source: Lee Wee Brothers
The well-loved boxed drinks popular during Chinese New Year, along with apple juice, mineral water, carbonated drinks, beer, ciders, and flavoured energy drinks will also be taxed at the same value.
6. Pharmaceutical products, including some traditional Chinese medications, are exempted
Source: Pharmaceutical Technology
First aid kits, bandages, heat patches, and plasters are also exempted under the same category.
7. Sanitary pads and tampons placed under the ‘exempted’ list
YES, FINALLY! It is reported that under GST and the first version of SST, sanitary pads were counted as taxable items.
Luckily it is now placed under the exempted list!
8. Personal grooming products will leave a bigger hole in your wallet
Basic necessities, such as bath foam and toothpaste, fall under the ‘cosmetic products and perfume’ category which will be taxed at 10%.
This also affects all forms of make-up, skincare products, and clothing.
9. Electronics will be taxed
Source: Trip Tip Las Vegas
When SST rolls around, handphones, laptops, computers, and portable storage devices will be taxed at 5%.
That’s the better end of the deal though, as most electrical household appliances are taxed at 10%.
10. Books are exempted under SST
Source: Time Out
Whether it’s comics, novels, non-fiction, reference materials, or children’s books – all will continue to be exempted from tax under SST.
11. Motor vehicles will likely see a 10% tax
Source: Paul Tan
Sedans, SUVs, buses, motorcycles, sports cars, and even garbage collection trucks will be taxed.
Wheelchairs and baby strollers, which fall under the ‘vehicles’ category, are exempted.
Source: Imperial Motorcycles
You only have another 2 days before the SST is implemented, so take this chance and buy whatever you need or want!
To see the full list of proposed items, click here!